Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-27-2019, 07:52 PM
Junior Member
 
Join Date: Mar 2019
Posts: 1
Is my primary home refinance origination fee tax deductible

In 2018 I refinanced my home loan and took additional 32,000 in that to improve my home. I paid about $3900 closing cost (which includes 1,700 origination fees, $740 Appraisal, $335 Tax and other fees and $100+ and others fees).

My question is how what all I can tax deduct from the above listed costs.

Thanks.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-28-2019, 12:09 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,233
Is my primary home refinance origination fee tax deductible
________________________________________
In 2018 I refinanced my home loan and took additional 32,000 in that to improve my home.
=========>>>you need to add the cost of capital improvements of $32k to your tax basis in the house.(so you cannot deduct it on sch a of 1040 on your return. )Your tax basis is the amount you'll subtract from the sales price to determine the amount of your profit. A capital improvement is something that adds value to your home, prolongs its life or adapts it to new uses.

I paid about $3900 closing cost (which includes 1,700 origination fees, $740 Appraisal, $335 Tax and other fees and $100+ and others fees).

My question is how what all I can tax deduct from the above listed costs=====>>>in general, when you refinance your primary home or a 2nd home for personal use , you can only deduct points over the life of the loan. I mean You can only deduct closing costs for a mortgage refinance if the costs are considered mortgage interest or real estate taxes. To claim the costs, you need to itemize deductions on sch a of 1040.You closing costs are not tax deductible aslongas they are fees for services, like title insurance and appraisals. So,Other typical closing costs on a refinance such as appraisals, underwriter, attorney, or bank fees, title search, etc are not deductible.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Refinance co-owned home and add to equity PDXBirdman Homeowner Tax 1 11-14-2017 05:02 AM
Are loan fees from refinance of primary home deductible? Hiltie Rental Real-Estate 1 02-17-2011 04:47 AM
home refinance with cash out for home improvements sharipat Miscellaneous 0 04-08-2010 02:54 PM
Buying a business with home refinance dollars CoffeeNut Miscellaneous 0 01-10-2010 09:16 PM
First Time Home Buyer Credit - refinance into existing property? Freefall_Doug Homeowner Tax 0 08-11-2009 10:53 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning