tax time: mortgage points and loan origination fees

RenegadeT

RenegadeT

no shirt,no shoes,no dice
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Last year we refinanced our house. The 1098 we rec'd does not show anything in Box 2 for Points Paid. TurboTax is asking if we paid any points (origination fees). Then the clicky help give this...
Loan Points (Origination Fees)
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Points are fees charged for acquiring a loan. These fees may also be called loan origination fees, maximum loan charges, loan discount, or discount points.

Points do not include broker fees, funding fees, processing fees, settlement fees, or underwriting fees.
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We did pay a significant origination fee, I believe it was a percentage of the loan amount. Should I be able to deduct that, and why isnt it on my 1098?
 
Curious, who is the lender?
Honestly I don't know the answer to your specific questions (re: points/orig. fees).. however...
This year the 1098 we got from SunTrust only listed the total $$ paid in interest and taxes, but nothing about MIP monthly payments (we had an FHA loan).

In past years it always has.
I thought maybe this was an oddity b/c we re-fied in Dec, but I called them.The rep said that, nope, for some reason this year they had a change in policy and only reported what was required of them - interest and taxes witheld in escrow - and did not report MIP payments.
I was like, "WTF? So even though you have a box for it there and you know the info, you intentionally left that out?" He said, "yes, sir, and for the last month we've been fielding tons of calls about this. Supposedly they are sending out new 1098s..."
I have yet to receive one however.

And FYI don't forget if you have an FHA-backed loan you can deduct not only the monthly MIP, but any upfront insurance you had to pay at closing split over 7 years...
 
Coastal Federal Credit Union

The fine print on the 1098...

Box 2.
Not all points are reportable to you. Box 2 shows points you or the seller paid this year for the purchase of your principal residence that are required to be reported to you. Generally, these points are fully deductible in the year paid, but you must subtract seller-paid points from the basis of your residence. Other points not reported in box 2 may also be deductible. See Pub. 936 to figure the amount you can deduct.
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I guess I better go See Pub. 936 :wtf:
 
Hey Tony note the "exceptions" list here
http://www.irs.gov/publications/p530/ar02.html
It sounds like the origination fee would indeed be deductable - assuming its the typical 1% or whatever - but how you deduct depends if you paid it in cash at closing (in which case you deduct all now) or if you did like most... and rolled it into the loan so you didn't pay it up front (see #6)...
 
I cant help you with your question but can tell you Coastal didn't list the PMI we paid on our 1098 for 2012. When I inquired about it, they responded that because we paid less than $600 they didnt have to report it to the IRS even though it is deductible & was reported in previous years. The customer service rep did provide the total for me so I could deduct it but in my case didn't change the return. You can always send them a message requesting the amounts.
 
Page 2 of your CLOSING statement will show you the origination fees!!!

Yes it is deductible / but spread over the life of the loan, so it is not much. However if you refi'd your home before and spread THOSE origination fees over the life of that loan, THEY are now written off in the current year. (So if you had 2000 originally, and 1850 left non deducted, you get that 1800 this year)
 
SHINTON said:
Page 2 of your CLOSING statement will show you the origination fees!!!

However if you refi'd your home before and spread THOSE origination fees over the life of that loan, THEY are now written off in the current year. (So if you had 2000 originally, and 1850 left non deducted, you get that 1800 this year)
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Oh no shit... thanks Sam.
 
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