Get Inman via Facebook Messenger
Our top headlines delivered once a day.
by CareyBot

DEAR BOB: In January 2004, we refinanced our home mortgage and paid a $2,400 loan fee to the lender. When we had our 2003 income taxes prepared, we asked if we can deduct the loan fee on our 2004 tax returns. The tax preparer said "no." She says we can deduct that $2,400 loan fee at only $80 per year for the next 30 years. If this is true, what a rip-off! – Rolf R. DEAR ROLF: Your tax preparer is correct. When refinancing a home mortgage, you can only deduct any mortgage loan fee paid over the life of the loan, presumably 30 years in your situation. Purchase Bob Bruss reports online. Now you know why I yell and scream for refinancing homeowners to never pay a mortgage loan fee, even if they have to pay a slightly higher tax-deductible mortgage interest rate. WHEN RELATIVE DIES W...