One may argue that the loan origination fees
and the points of a loan that are used to buy a main home are deductible in the year paid under the current tax law.
1.221-1(f)(2)(ii) and (f)(4), Example (2), discuss loan origination fees
. When the lender imposes such a fee, the amount is typically deducted from the loan proceeds.
92-12 allows amounts designated as "loan origination fees
" on Veterans Affairs (VA) and Federal Housing Administration (FHA) loans to qualify for a deduction in the year paid so long as the other requirements of Rev.
The bank recorded positive performance in loan origination fees
, Bancassurance commission, fees from wealth management products and commission fees from foreign exchange, but its total impairment charge was higher than what it was during the same period last year.
In PNC, the Tax Court had also relied on INDOPCO to require loan origination fees
to be capitalized.
Taxpayers usually pay points--also referred to as loan origination fees
, loan processing fees, maximum loan charges or premium charges--when closing a mortgage to secure a lower interest rate over the life of the loan.
Realty America accused TCC of making false representations to provide funding in a "Ponzi scheme" to commit to loans in order to garner loan origination fees
without the ability to fund them.
The 2000 IRS business plan lists a number of specific INDOPCO rulings (such as cyclical maintenance costs, sales commissions paid to obtain new customers, mutual fund launch costs and loan origination fees
) and indicates that more general guidance may be forthcoming.
By initiating the mortgage origination process directly with the consolidator, the consumer would trim steps and save on loan origination fees
and above-market discount points.
Designations such as "loan origination fees
," "loan discount," "discount points" or "points" are acceptable.
* The points must be designated on the Uniform Settlement Statement as points (for example, as loan origination fees
(including amounts so designated on Veteran Affairs (VA) and Federal Housing Administration (FHA) loans), loan discounts or discount points), and shown as paid from either the borrower's or seller's funds at settlement.