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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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What Settlement Statement (hud-1) expenses can be claimed on

Customer Question

What Settlement Statement (hud-1) expenses can be claimed on income tax? And under what line item?
Submitted: 5 years ago.
Category: Tax
Expert:  Jax Tax replied 5 years ago.

Jax Tax : Points, loan origination fee, loan discount, or discount points. These are names for the same thing which is the cost of your loan. They came be titled as any of the above but it should show up on your 1098 from the lender.
Jax Tax : Property taxes paid are also deductible.
Jax Tax : Sch A itemized deductions. Taxes under tax and points on line 10 with interest.
JACUSTOMER-cigt6hwk- :

hi

JACUSTOMER-cigt6hwk- :

this is for a house we purchased

JACUSTOMER-cigt6hwk- :

all we have in front of us is the settlement paperwork

JACUSTOMER-cigt6hwk- :

please direct us to the items we can claim

JACUSTOMER-cigt6hwk- :

we have claimed taxes already

JACUSTOMER-cigt6hwk- :

but wonder about the origination fee

Jax Tax : No HUD is the same. Look for items such as property tax and points/settlement or origination fees as stated above.
JACUSTOMER-cigt6hwk- :

hold and let me look

JACUSTOMER-cigt6hwk- :

it shows that we paid 1317.78 for "your adjusted origination charges"

JACUSTOMER-cigt6hwk- :

does that count?

JACUSTOMER-cigt6hwk- :

can we claim everything under "items payable in connection with loan" (your adjusted origination charges, appriasal fee, credit report, and flood certification)?

JACUSTOMER-cigt6hwk- :

i have not received an acceptable answer from you yet

JACUSTOMER-cigt6hwk- :

i hope i am not being charged for the back and forth because i still have not received the specific answer

Expert:  Jax Tax replied 5 years ago.
Yes, these go on line 10 of sch A. You really do need your 1098 though as other items not on the HUD are deductible and will be on there. The 1098 will include everything.
Expert:  Jax Tax replied 5 years ago.
No, only the origination fee and taxes. The other items are not deductible.