, EA, Social Media Tax ExpertTaxPro Moderator
Generally, you can only deduct qualified points paid on a mortgage over the term of the loan (as stated by pdhileyjr above), unless the property is rental property.
The fees that can be deducted in a mortgage refinance generally depend on whether the property is your principal or rental residence, how the loan proceeds were used, and whether you paid qualified points or not.
Qualifying points are considered pre-paid interest. This interest is paid or treated as paid to the lender by a borrower to obtain a mortgage loan. Points can also be called loan origination fees, maximum loan charges, discount points, or loan discount.
Here is a good article titled What Can I Deduct in a Mortgage Refinance? that may be helpful too:
People come to TurboTax AnswerXchange for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:
- Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
- Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
- Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
- Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
- Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.