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Level 2
January 27, 2022
Question

Closing Costs

  • January 27, 2022
  • 2 replies
  • 0 views

I refinanced my primary home in June 2021.  On the closing statement, under "Loan Cost" there are two entries.  The first is "0.375% of loan amount (Points)".  The other is "Origination Fee".  Which is deductible?  Both?

    2 replies

    Level 15
    January 27, 2022

    Both points and origination fees are closing costs and can be deductible.

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    Level 2
    January 27, 2022

    Thank you very much!

     

    Mike9241
    Level 15
    Level 15
    January 27, 2022

    on a refi the points are not deductible but must be amortized over the life of the loan, however, if any portion of the refi was used to substantially improve your home, then a pro-rata portion of the points is deductible

     

    IRS PUB 936

    https://www.irs.gov/pub/irs-pdf/p936.pdf 

    Mike9241