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webwolf10
New Member

I refinanced my home and paid off my now ex-wife to keep the home. is this refinance able to be written off along with the lump sum I paid her as part of the divorce?

Would/could that be written off as a one time alimony payment?
1 Reply
Marketstar
Level 7

I refinanced my home and paid off my now ex-wife to keep the home. is this refinance able to be written off along with the lump sum I paid her as part of the divorce?

The following can be deducted on a refinance:

·       Daily mortgage interest from the day you closed to the end of the month.  You will see this on your closing document, but it may not be included on your 1098 mortgage statement.

·       Real estate taxes charged to you

·       Points (sometimes called origination fees and expressed as a percentage of the amount borrowed. On a refinance they need to be amortized over the life of the loan unless the points were used to improve your main home 

·       Mortgage insurance, if paid

Alimony is a payment to or for a spouse or former spouse under a divorce or separation instrument. Alimony does not include voluntary payments that are not made under a divorce or separation instrument. Alimony is deductible by the payer and must be included in the spouse's or former spouse's income

Alimony does not include:

·         Child support

·         Noncash property settlements

·         Payments that are a spouse's part of community income

·         Payments to keep up the payer's property

·         Use of the payer’s property

 Alimony Requirements:

·         The payment is in cash.

·         The instrument does not designate the payment as not alimony.

·         The spouses are not members of the same household at the time the payments are made (applies only if the spouses are legally separated under a decree of divorce or separate maintenance).

·         The payer is not required to make any payment (in cash or property) after the death of the recipient spouse.

·         The payment is not treated as child support


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