New client had done own 2017 tax return. I see that they refinance in 2017 to pay off debt. In the refinance, they paid a VA Funding Fee of $6667. This is Mortgage Insurance Premiums prepaid. Normally, with a purchase you can deduct the "VA Funding Fee" all at once. My question is, this is a refinance and they did not bring cash INTO the refinance so can we amend and take it all? I am questioning it, because they did not bring CASH INTO the refinance.
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Anyone have some input on this? Amend and take it all since it was a "VA Funding Fee"? Or since it was a refinance to take equity out and no cash brought into the transaction, then amortize it over 7 years?
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Is it listed on the 1098 as mortgage insurance?
Is this acquisition debt?"Taxation is the price we pay for failing to build a civilized society." ~ Mark SkousenComment
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yes, it is Mortgage Insurance and he refinanced his acquisition debt loan and took out equity to pay off debts. So after the refinance it is a combination of Acquisition debt and equity debt.Originally posted by Anarchrist View PostComment
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