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Is an administrative fee labeled under origination fees, tax-deductible on a new home purchase?

In a new home purchase, if there is an administrative fee that is under the origination fee heading, is this tax-deductible?  The fee is a flat fee, not a percentage of the loan amount.

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1 Reply
MinhT
Expert Alumni

Is an administrative fee labeled under origination fees, tax-deductible on a new home purchase?

No, the administrative fee is not deductible. To be deductible, origination fees (or points) must be calculated as a percentage of the loan principal.

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