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my husband and i bought our first house last year - it closed dec. 31st. we didn't pay much interest the one day we owned it last year, but we did pay a loan origination fee and closing costs. can we deduct those? they aren't shown on the tax form the mortgage company sent to us.

any help from the wise?


You can deduct the loan origination fee, but not the closing costs. HOWEVER, you may find it better not to deduct the points. If you already have enough deductions in 2002 to itemize before considering the points, then go ahead and deduct them. If not, you will "lose" the deduction for the amount of points used to get you above the standard deduction.

In this case you would do better to amortize the points over the life of the mortgage. If it's a standard 30-year mortgage, deduct 1/360 of the points for each month you have the mortgage.

Ira
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