Lender Closing Cost Credit

[Questionguy101]

How do you account for Lender Closing Cost Credit.

Suppose the total closing cost of a refinancing to the taxpayer is $3,000. And there is a Lender Closing Cost Credit of $3,500. Does that mean there is no deductible closing cost because all the cost supposed to be paid by the taxpayer has been credited by the Lender?

[Questionguy101]

Someone has an opinion? Thanks!

[JG EA]

Add and subtract on the closing statement. Does the loan amount perhaps cover the closing costs In which case he will pay them over time. It is possible they had some deal and your client didn't pay any.