Points on HUD-1

[Uncle Sam]

I know this was discussed here before - but I looked at wasn't able to find it.

HUD-1 has 2 lines for points

Our origination charge

Your credit or charge for specific interest rate

Your adjusted total (combined total of both)

Which one is tax deductible? I know one is, one isn't

[FEDUKE404]

More info?

Not knowing the full facts, I would not immediately state one is not deductible.

Closing statements can be strange, especially depending upon where the funds originated, to include FHA/VA stuff.

The only clear answer is that if the LOF was a fixed fee, and not a per cent of the underlying loan ("cost of money"), then it definitely could not be taken and would become a cost basis item only.

FE

[dyne]

HUD advised my client that the "OUR" loan orgination fee is deductible, normally
amoritzable over the life of the loan. I mailed a letter to HUD advising them to CHANGE
their form to say LOAN ORIGINATION FEE but I doubt that they will do so.