Originally Posted by VictorBurek
You should consult with a CPA on this question. But... loan origination is tax deductible in the year you bought home.
When did you buy the home? If you bought it this year than the tax money is placed into escrow and not technically paid to the lender. So you wouldnt be able to deduct until the following year. If this CPA cannot explain to you why it isnt deductible, i would suggest you find another CPA.
Yes purchased home in 2009. I have a CPA. We tend to disagree on some parts of tax law occasional. My previous CPA unfortunately is deceased so I've only been working with this CPA for over a year.
Yes, I had around $3300 prepaid put into escrow (lender pays real estate taxes from escrow). So he told me I can't deduct prepaid real estate escrow money. However, I can deduct prepaid interest for the 2 days the bank charged me (We closed on the 27th of februrary).
I guess I made a mistake in 2005 when I purchased a new home and deducted the prepaid escrow money to be used to pay real estate taxes. Guess it's been been more than 3 years so IRS can't audit me for that (it wasn't intentional, I just didn't know the tax laws at that time).