Is a Loan Discount Fee the same as points and is it tax deductible?

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I was told by a Quicken Loan Broker that I bought down the interest rate with point and they were tax deductible. I received my 1098 and no points are listed in block 2. Only mortgage interest is listed in block 1. On my settlement statement is a loan discount fee of 2%, is this the same as points? Is it tax deducible?

2 Comments
  1. Reply
    Lookin4Answers
    January 25, 2011 at 2:41 am

    Eh…Your explanation is pretty blurry to be honest with you.

    But depending on what the actually charge is, it might very well could be your point deduction, %2.

    For example, 1 point on a $ 100,000 loan would cost $ 1,000.

  2. Reply
    hrblockchristinew
    January 25, 2011 at 3:25 am

    Yes points that are deduct able ar sometimes called loan origination points. If you paid the points up front at closing, you can claim them all in one year. If you did not pay the points up front, you will amortize the points over the life of the loan.

    Check this link out.

    http://www.irs.gov/publications/p936/ar02.html#en_US_publink100037108
    Christine EA Master Tax Adviser
    Check out my profile

    This advice was prepared based on our understanding of the tax law in effect at the time it was written as sit applies to the facts that you have provided. http://www.hrblock.com/taxes/tax_tips/index.html
    http://www.hrblock.com/taxes/tax_calculators/index.html

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