mortgage refinance fees. Is line 803 on my HUD-1, adjusted origination fees, deductible? I find different answers when I search

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    Is the amount a "net" amount you paid?

    Typically, with a refinance, they are deducted over the term of the new loan.  But, there is an exception that will allow you to deduct them in the year paid.

    You can fully deduct points in the year paid if you meet all the following tests.
        - Your loan is secured by your main home. (Your main home is the one you ordinarily live in most of the time.)
        - Paying points is an established business practice in the area where the loan was made.
        - The points paid were not more than the points generally charged in that area.
        - You use the cash method of accounting. This means you report income in the year you receive it and deduct expenses in the year you pay them. Most individuals use this method.
        -The points were not paid in place of amounts that ordinarily are stated separately on the settlement statement, such as appraisal fees, inspection fees, title fees, attorney fees, and property taxes.
        - The funds you provided at or before closing, plus any points the seller paid, were at least as much as the points charged. The funds you provided do not have to have been applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid at or before closing for any purpose. You cannot have borrowed these funds from your lender or mortgage broker.
    • Karen, you didn't answer the question.  You explained in detail how points may be deducted, but points are entered on line 802 of the HUD-1 form.  The question is whether adjusted origination fees from line 803 of the HUD-1 form are deductible.
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