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Can I deduct VA Funding Fee for primary residence purchase in 2017? IRS Extenders were approve by Congress and Senate for 2017.

 
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ToddL
New Member

Can I deduct VA Funding Fee for primary residence purchase in 2017? IRS Extenders were approve by Congress and Senate for 2017.

Yes, but you will have to wait until the IRS (and then TurboTax) update and post changes to the forms and processing systems for this and the "other extenders".

The following Comment from an AXC SuperUser discusses this in additional detail and provides excellent insight into the "road ahead";

The tuition and  fees deduction, PMI, energy credits and other deductions  expired on Dec 31, 2016 and were not renewed by Congress in the December tax bill, however, in the The Bipartisan Budget Act of 2018 that was signed into law on Feb 9th those deductions and others were made retroactive for 2017.

Before you can add any of  those deductions the changed forms must be updated to comply with the new law.  That might take a while.  The IRS must write the new rules, issue electronic specifications for the new forms and approve them before TurboTax and other e-file providers can add them.  If history is any guide, that process can take 1 to 2 months.  It usually takes TurboTax 10-14 days after the IRS issues the specifications.  (It  took the IRS a month and a half to approve some the forms that the Dec tax law changed.)

The IRS says:  
https://www.irs.gov/newsroom/irs-statement-on-retroactive-extender-provisions

Nothing can be done until the IRS acts and issues the new form specifications.  It does not matter who you go to.

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1 Reply
ToddL
New Member

Can I deduct VA Funding Fee for primary residence purchase in 2017? IRS Extenders were approve by Congress and Senate for 2017.

Yes, but you will have to wait until the IRS (and then TurboTax) update and post changes to the forms and processing systems for this and the "other extenders".

The following Comment from an AXC SuperUser discusses this in additional detail and provides excellent insight into the "road ahead";

The tuition and  fees deduction, PMI, energy credits and other deductions  expired on Dec 31, 2016 and were not renewed by Congress in the December tax bill, however, in the The Bipartisan Budget Act of 2018 that was signed into law on Feb 9th those deductions and others were made retroactive for 2017.

Before you can add any of  those deductions the changed forms must be updated to comply with the new law.  That might take a while.  The IRS must write the new rules, issue electronic specifications for the new forms and approve them before TurboTax and other e-file providers can add them.  If history is any guide, that process can take 1 to 2 months.  It usually takes TurboTax 10-14 days after the IRS issues the specifications.  (It  took the IRS a month and a half to approve some the forms that the Dec tax law changed.)

The IRS says:  
https://www.irs.gov/newsroom/irs-statement-on-retroactive-extender-provisions

Nothing can be done until the IRS acts and issues the new form specifications.  It does not matter who you go to.

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