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Old 01-02-2008, 05:53 AM
 
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Can you deduct point/closing costs, etc. from a refinance like you do with the original purchase of a home?
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Old 01-02-2008, 09:08 AM
 
Location: Charlotte, North Carolina
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yep! the same thing.
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Old 01-02-2008, 09:58 AM
 
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Quote:
Originally Posted by golfgal View Post
Can you deduct point/closing costs, etc. from a refinance like you do with the original purchase of a home?
Hi Golfgal,

While I am no CPA, I beleive there is a difference on deductibility between a purchase and a refi. On the refi. you have to pro-rate the origination fee and/or discount points over the term of the loan. eg. you paid $1,000 in points on a 30 yr. fixed refi....you get to deduct $33.33/yr. for the 30 years. The only other deduction is the odd days interest. eg. If you close on the 15th you will pay 15 or 16 days of "odd days interest" to get you to the 1st. I don't beleive this gets report on your 1098 that you get from your lender, so you can add it to your interest paid for the year.

FYI-on a purchase you get to deduct the entire origination fee and/or discount points in the year incurred even if the seller paid it. This is something to definitely consider when you are looking at paying any points for a lower rate.
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