New Client had refinanced. Looking at the Closing Disclosure statement Under the Origination Charges is listed .245% of loan amount (points) and right underneath that is listed Broker Compensation to John Doe and that amount is $6,627.38 which happens to equal 1.7% of the loan amount of $ 389,846. So Can I add that to the points, since it is a percentage of the loan. He refinanced with Quicken Loans.
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Everything is a percentage of the loan. I doubt a commission can be considered prepaid interest. What does the 1098 list as points?"Taxation is the price we pay for failing to build a civilized society." ~ Mark Skousen -
Interesting scenario. I have a client who refinanced in 2021. Just got their tax records today. I may need to look around. . .further.
I agree with the comment made by Anarchrist.
Points on a refi have to be amortized over the life of the (new) loan or until that loan is paid off. I have no idea how the new and improved Form 1098 will handle that matter!
Please keep us updated.Comment
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IRC 461(g) states “points” (aka prepaid interest) represents the interest charge for the use of money. The broker compensation does not represent an interest charge for the use of money.Originally posted by nwtaxlady View PostComment
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Yes, I am aware of that. Just wondering if can include the Brokerage fee since it was a % of the loan. Doesn't look like it. Thanks.Originally posted by FEDUKE404 View PostComment
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ok.. I don't think it is prepaid interest. So in that case, NO. Thanks!!Originally posted by New York Enrolled Agent View PostComment
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