HOME REFINANCE
I am helping a friend do her income tax, she is head of household,
refinanced her home this past year, (NO POINTS)
closing statement has a bunch of garbage fees, Can any of these fee be
deducted, and if so where do I put them Sched A
under legal, etc? line number ?
Appraisal fee $325.00
Credit Report 24.50
Tax Service fee 80.00
HOA CERT Fee 12.00
HOA STATUE FEE 150.00
FLOOD CERT 17.00
ASSIGNMENT 10.00
TITLE INS 422.00
FORM 100 20.00
RECORDING FEE 85.00
She also have heard she has a time share in Mexico, I have not asked about
taxes, interest and insurance (on time share) , would I be opening a can of
worms on this subject
Not an unusual amount of "garbage fees". But none of these can be
deducted or amortized: only ones that are charged in place of interest
and based on the value of the property (commonly called "points" or
"loan origination fee") get that treatment. Keep track of them anyway,
because she gets to add them to her basis when she sells.
> She also have heard she has a time share in Mexico, I have not asked about
> taxes, interest and insurance (on time share) , would I be opening a can of
> worms on this subject
Among other things, it would depend on whether she actually owns a
share of the property, or just owns the right to use it. (Timeshares
that are rights-only are common in Mexico.) If she actually owns a
share of the property, she may have a deduction for interest and
property taxes, but not likely for other expenses.