Our Origination Charge on HUD & Points Box 2 form 1098

[AZ-Tax]

I read the post that HUD advises "Our Org Charge" are deductible but normally amortized and TTB 4-12 has all these qualifers on whether Org Charge can be a current yr deductible or amortized. One of the qualifiers is: "6 )The funds cannot have been borrowed from the lender or mortgage broker". On the HUD the org charge ($2057) appears in neither the buyer or seller column but within the column after the words: Our origination charge. Does this mean the Org Charge was financed or paid in cash by borrower? UPDATE: upon futher look, I see the same amt of $2057 under the "buyers" column a few rows down as: your adj org charges.

Another qaulifer TTB 4-12: 9) The points are clearly shown on the settlement statement as points charged for the mortgage. Points in box 2 of form 1098 dont match any amt on the HUD. I am wondering if the Org Charge includes the $1000 of pts.

[Gretel]

Partial

Just responding to your first question. I believe as long as the buyer has to bring in as much cash as the points are, points are deemed to be paid for. Don't have my TTB here but I think I got this from TTB.

[Burke]

Looks like you have two threads on same subject here. Check my recent reply on previous message.

[AZ-Tax]

The more opinions I read from searching online the

more I am leaning towards deducting the entire Orig Charges + Pts in 2010 mostly because this was NOT a refi but a purchase of a home. Virtually all the opinions that refer to amortizing relate to refi's

[Burke]

Pls see TTB 4-12(6). It is clear. The points on the purchase of a home are fully deductible as long as the buyer paid funds to close the deal which were AT LEAST as much as the points. Otherwise, they are amortized over the life of the loan. You can tell how much he paid by reviewing the HUD-1. Count earnest money, balance on closing (see bottom left), escrow deposit, etc. Perhaps your TP paid $1,000 and no more? That could be why that amt is on the 1098 as "fully deductible points," but not on the HUD-1. The total points were apparently $2,057. IF that is the case, you have $1,000 deductible in full, and the balance amortized.