JustAnswer > Tax
Ask A Question|Register|Login|Help
JustAnswer

Tax

Ask a Tax Question, Get an Answer ASAP!

Have your own Tax question?

7 Tax Professionals are Online Now
characters left:
Not a Tax Question?

Related Tax Topics:

  • Tax
  • ,
  • Fees
  • ,
  • Loan
  • ,
  • Paid
  • ,
  • Year
  • ,
  • Years
  • ,
  • Deduct
  • ,
  • Estate
  • ,
  • Payment
  • ,
  • Deducted
Bookmark and Share

Question

I refinanced our home this year to lower my payment. What are the tax breaks i get?

Submitted: 136 days and 12 hours ago.
Category: Tax
Value: $30
Status: CLOSED
+
Read More
Posted by LEV 136 days and 12 hours ago.

Answer

 

You will continue to deduct your mortgage interest as you did before.

You will deduct your real estate tax - that is paid out of your escrow account.

 

If you had any refinancing expenses - such expenses should be amortized over the lif e of your mortgage - and will be deducted as interest mortgage - for instance if you refinance for 15 years and paid $3000 for that - $3000 are treated as prepaid interest - you will be able to deduct $200 each year.

 

Let me know if you need any clarification or any other help.

 

136 days and 12 hours ago.

Reply

I paid 3200.00 i loan orig fees and 2300 in discount fees.

Accepted Answer

Yes - these fees are treated as prepaid interest.

They are fully deductible if paid in connection with purchase the primary home.

But if paid in connection with refinancing - they are deducted over the lifetime of the mortgage.

If your new mortgage is for 15 years - you will be able to deduct $5500 / 15 = $367 every year.

If will you sell the property of refinance again befor e 15 years - you will be able to deduct the remaining amount.

 

Let me know if you need any help.

 

Picture
Expert: LEV
Pos. Feedback: 99.3 %
Accepts: 
Answered: 7/9/2009

Tax Preparer

Taxes, Immigration, Labor Relations

+
Read More

Related Tax Questions

  • i need a cpa letter
  • I have a 401k plan I need to rollover to an IRA plan, what ....
  • How do I file for renters credit?
  • Can a loan to a non-profit organization be ...
  • More than 1 direct rollover of same IRA funds
  • where do i get my w2s?
  • how to give house to a family member
  • nursing or convlescent homes in carterville georgia



Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Question List | Become an Expert | Terms of Service | Security & Privacy | About Us
© 2003-2009 JustAnswer Corp.