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    baovle's Avatar
    baovle Posts: 19, Reputation: 1
    New Member
    		  
    #1

    Apr 10, 2013, 10:38 PM
    is HUD-1 origination charge tax deductible?
    I had a refinance on my home in 2012.
    Can I deduct the origination charge with the follow numbers from HUD-1:

    HUD line #801 (our orig chg) = 1099
    HUD line #802 (your credit or charge (points) for the spec. interest rate = -2775
    HUD line# 803 (your adjusted origination chgs = -1676

    Thanks,
    Bao
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 13, 2013, 09:54 PM
    The Loan Origination Charge IS considered to be pre-paid interest similar to discount points.

    However, it appears that the mortgage company is offering some sort of discount that negates the loan origination charge.
    baovle's Avatar
    baovle Posts: 19, Reputation: 1
    New Member
    		  
    #3

    Apr 15, 2013, 09:12 AM
    Thanks AtlantaExpert. Can I claim deductions if line 803 is a positve number?

    I checked the internet, and some sources said that origination charge is what the bank charge to process the loan (processing fee) and cannot be tax deductible. This is not like the discount point you pay to get a lower intestest rate which can be tax deductible.

    So I'm still some what confused on whether the origination charge is tax deductible.

    Thanks,
    Bao
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Apr 15, 2013, 12:13 PM
    Check the IRS pub that covers mortgage interest. There it says loan origination fees are considered prepaid interest.
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