How should one claim loan origination fees and loan discount fees when filing for tax returns?

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Loan Discount points and tax deductions You can claim your loan origination fee and loan discount points as interest. Essentially a loan origination or discount point are used as pre paid interest to the lender to attain a desired rate. Claim you fees as interest deductions added to your interest paid ytd from previous mortgages(on a refinance) or YTD plus origination and discount. Depends The current deduction is relevant to home loans only, within certain qualifying guidelines. Loans secured by things other than your primary residence (like a car, boat, business, stock, etc) generally are not deductible at all. The IRS has a special qualification for when fees and points that are on a home are allowed to be deducted when paid on origination, not as otherwise required - ratably over the course of the loan. Generally, it is best to follow the paperwork you will receive from the lender specifying which fee's and points are considered a prepaid interest and may be deductible. Fees (sometimes reflected as points) like those for appraisals, credit reports, brokerage, etc., generally are not.
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