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We Have A HUD Statement On The Closing Of Our Home We Just Refinanced. Is Any Of This Deductible?

Deduction Real Estate Mortage Refinance
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Tax Professional Answers

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Lisa Nason CPA, MST
If the mortgage refinance was for your main or second home then you are only allowed to deduct qualifying points over the life of the loan. Qualifying points are usually fees paid to the lender for the loan. Bank fees, attorney fees, and other closing costs are not deductible.

If, however, the mortgage refinance was for your rental property then all expenses (including points plus other loan expenses) in connection with securing the loan are deductible over the loan term.
Leave a Comment 287 weeks ago

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Charles Woodson, EA
If funds acquired in a re-fi are used to substantially improve a personal residence the loan interest is considered acquisition debt (to the extent used for the improvement(s)) and the portion of points connected to the acquisition debt is deductible for the year of the re-fi.
Reply 287 weeks ago
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Michael Cash
In determining any profit from the sale escrow expenses and sales commissions are deducted from the sales price. Prorations of property tax are deductible to the extent they are your share. (If you sell part way through a payment period--half a year in my state--and the full payment will be paid by the buyer, you will be debited for the portion that is due through the close of escrow.) You can ignore any interest stated on the HUD statement because that will show up on the Form 1098 your (old) lender will send you.
Leave a Comment 287 weeks ago


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