Loan Orgination fee TTB page 4-12

[AZ-Tax]

Its states on pg 42 left side that LO fee NOT reported on form 1098 goes on ln 12 of Sch A. Then on the left side it states if the LO was due to refiancing, then the LO must be amoritized life of the loan. Obvious the difference is ln 12 is 100% current deduction.

So my client refianced but the LO was not reported on his 1098. I plan to amortize the LO for the life of the loan, correct?

[BOB W]

Its states on pg 42 left side that LO fee NOT reported on form 1098 goes on ln 12 of Sch A. Then on the left side it states if the LO was due to refiancing, then the LO must be amoritized life of the loan. Obvious the difference is ln 12 is 100% current deduction.

So my client refianced but the LO was not reported on his 1098. I plan to amortize the LO for the life of the loan, correct?

The key here is how the money was used. If refi, $ for $ then amoritize for loan period. If refi was for more money and the excess money was used for home improvements, then that percent can be be expensed and the balance amoritized over the lenght of the mortgage.

It is all about "acquistion indebtedness" on borrowed money regardless of what line the HUD statement shows it on or if it is on a 1098 or not.