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rodglenda121212
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On Closing Disclosure Can I report amount from line A : Origination Charges? Or Line D: Total Loan Cost as points? 2. Are transfer and recordation taxes property taxes?

 
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MichaelDC
New Member

On Closing Disclosure Can I report amount from line A : Origination Charges? Or Line D: Total Loan Cost as points? 2. Are transfer and recordation taxes property taxes?

Yes. Loan Origination, Loan Discount charges or points - Deductible as itemized deduction ('points') on Form 1040 schedule AOn a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home, - lines 801 and 802, net on 803 on the HUD-1

No. Transfer taxes are also known as recordation taxes, stamp taxes or grantee taxes but are all lumped together on the HUD-1 settlement statement and identified, collectively, as "Transfer Tax." These are not deductible but are added to your initial investment and are helpful when you sell the property.

In general, you can deduct any taxes paid or mortgage interest as part of your closing costs and reported on your HUD-1.

The following lines may vary as the official HUD form changes over time: http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf

  • 210 - City/town taxes - Deductible as itemized deduction on Form 1040 schedule A
  • 211 - County taxes - Deductible as itemized deduction on Form 1040 schedule A
  • 801 - Loan Origination Fee - Deductible as itemized deduction ('points') on Form 1040 schedule A
  • 802 - Loan Discount - Deductible as itemized deduction ('points') on Form 1040 schedule A
  • 901 - Daily interest charges - Deductible as itemized deduction - this interest typically included in year end interest statement (Form 1098)
  • 1004 - Property taxes - Deductible as itemized deduction when paid from escrow; can be added to property taxes on your 1098 to indicate total amount of property tax paid for the year.

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MichaelDC
New Member

On Closing Disclosure Can I report amount from line A : Origination Charges? Or Line D: Total Loan Cost as points? 2. Are transfer and recordation taxes property taxes?

Yes. Loan Origination, Loan Discount charges or points - Deductible as itemized deduction ('points') on Form 1040 schedule AOn a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home, - lines 801 and 802, net on 803 on the HUD-1

No. Transfer taxes are also known as recordation taxes, stamp taxes or grantee taxes but are all lumped together on the HUD-1 settlement statement and identified, collectively, as "Transfer Tax." These are not deductible but are added to your initial investment and are helpful when you sell the property.

In general, you can deduct any taxes paid or mortgage interest as part of your closing costs and reported on your HUD-1.

The following lines may vary as the official HUD form changes over time: http://www.hud.gov/offices/adm/hudclips/forms/files/1.pdf

  • 210 - City/town taxes - Deductible as itemized deduction on Form 1040 schedule A
  • 211 - County taxes - Deductible as itemized deduction on Form 1040 schedule A
  • 801 - Loan Origination Fee - Deductible as itemized deduction ('points') on Form 1040 schedule A
  • 802 - Loan Discount - Deductible as itemized deduction ('points') on Form 1040 schedule A
  • 901 - Daily interest charges - Deductible as itemized deduction - this interest typically included in year end interest statement (Form 1098)
  • 1004 - Property taxes - Deductible as itemized deduction when paid from escrow; can be added to property taxes on your 1098 to indicate total amount of property tax paid for the year.

View solution in original post

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