I know mortgage interest is tax deductible but no one has been able to tell me if the prepayment penalties from refinances are deductible.
202364
MOST of the time they are deductible. \n\nThe rule is if they are a percentage then they are interest and are deductible.\n\nBut a far more important question is can the company charge them. Many states have written laws that prevent the companies from legally charging prepayment penalties. The problem is that many of the companies just go ahead and charge them anyway knowing that may people will never check  out if they are allowed to collect them.\n\nI had a client here in Wichita where I maintain a tax office come in last year after being charged a prepayment fee by Beneficial Finance wanting to know the same thing. When I told them to contact the Kansas Attorney Generals office because they weren't allowed to collect such fees anymore in Kansas I think that they though I was crazy.\n\nBut they took my advice and wrote them and within one week they had a letter from the Kansas Attorney Generals office saying that they had contacted Beneficial and ordered them to repay the prepayment fee. Of course they were elated.\n\nTo make a long story short the customer got back over $4800 within 10 days of contacting the Attorney Generals office. Just because they say they have the right to collect a prepayment fee doesn't mean they do.\n\nSo contact your State Attorney Generals Office and be sure they even had the right to charge you a prepayment fee. If they did then most like it's deductible. \n\nLet me know the details and I'll research it for you.
478007
A Home Equity Loan is a type of home mortgage.\n\nPoints (also called loan origination fees, loan charges, or loan discount fees) generally must be deducted over the life of the loan, unless they fit certain guidelines.  To be deductible, they must be paid solely for the use of the money. \n\nTo be fully deductible in the year paid, the deduction can not exceed the number of points typically charged in an area.  The loan must be secured by your main home and residence (not income property), and can not be rolled over into the loan.  They must be paid up-front, and clearly labeled on documents you receive from the lender.  Also, the funds must be used to buy or build a new home, or make improvements to your main home.  \n\nIf you took out a home equity loan and bought a car with some of the funds, or paid off credit cards, for example, the loan would qualify as home equity debt, or home equity mortgage loan.  It's possible the interest paid could be fully deductible, but the points would have to be deducted over the life of the loan.\n\nAlso, points are only deductible (on schedule A) if you itemize.  \n\nPrepaid interest is generally deducted over the life of the loan.
9627
That depends on the amount of the gain, your overall tax bracket, the amount of tax already paid for the year, etc., etc. The best strategy is to use a tax planning tool and put all the information in for the year including your filing status (single, married joint, married separate, etc), wages, tax withheld, whether or not you have mortgage interest or property taxes, interest and dividends as well as the capital gains. IF you come up short, you should pay Federal and state estimated taxes. If not, no reason to do so. You could be hit with a small estimated tax penalty which is basically equal to the amount of interest due on the amount of the underpayment if you come up significantly short.
143585
Going through old files.  Interest rates were much higher a few years ago and a lot of the people with 10% interest rates may be interested in refinancing considering they wouldn't have to add that many more years to their mortgage.  Assuming you're in the mortgage business, that is.\nAnd I know that it's difficult, but cold calling works as well.  Sending out inexpensive flyers works, too.
6146
Yes, go here and use one of the calculators offered...\n\nhttp://mortgages.interest.com/content/calculators/index.asp
25447
I am assuming this is a question on US Tax Law.\n\nYou can take any type of mortgage on your home to claim the interest deduction.  The end use of the loan does not matter.
429557
Yes, they are.  So are a lot of other things.  Basically, your "gain" is your selling price, minus your purchase price minus upgrades and improvements, minus purchase fees, minus selling fees...basically minus anything that you weren't able to claim against your taxes like mortgage interest and RE taxes.\n\nBut, please, don't take my word for it.  Everything you ever wanted to know about selling your house is at the IRS link attached.\n\nCongrats big time on having such a nice gain!
14490
Probably not.\nMost HELOC's come with a $500 cancellation fee if the loan is closed (sold, refinanced, etc) in the first 3 years.\n\nEven if they refinance you at no cost to you, you will have lost whatever principal balance you've paid down in the interim.\n\nBasically, you would have to save enough money during those 3 promotional rate months to offset all your costs.  (And if you have that $500 cancellation fee, that won't be too easy)
272721
You should pay some estimate so you don't get penalized.  If your tax liability is not within 15% of what you paid in throughout the year you'll be liable for penalties.
325595
Usually, but it depends on how property taxes are billed in your area. Are you being billed by your town, village and county?  Also is the tax abatement for school and property taxes or just property taxes.  Contact your lender to find out if they know something about your abatement and who your property taxes will be paid to that that you don't.  Chances are they miscalculated and you will see the $600 removed by the time you get your HUD 1 settlement.  Congrats on your purchase
337810
You have to crunch the numbers. There are calulators all over the net. Enter "refinance calculators" into Google.
16999
No you won't get penalized.  It is like giving an interest free loan to the IRS but a good way o trick yourself into saving money.  $100 might make too big of a difference in you paycheck try $50.
378891
Use a mortgage calculator because it's very hard to figure out compound interest manually - it's compounded every month, but also reduced by the amount you pay (assuming you make monthly payments) so you can't just multiply the principal ($4,327.77) by 10%\n\nIf you're not making monthly payments, then use an investment calculator.
627710
You can deduct all expenses directly related to your rental property, even if it is not being rented.  It must be available for rent tho.  So if one moves out, any expenses you incur in getting it ready for the next one are deductible, which include cleaning, repairs, rental agency fees.  The mortgage interest, RE taxes and insurance too.  The appliances can be dedcutible at 100% (Sec 179) but will depend on your income.  Otherwise you will need to depreciate in over time.  The cost of the property can also be depreciated over 27.5 years.  Most tax computer programs can help you with these calculations.\nOne issue will be what you do with the property the other months that you are not renting it out.  If you are living there, then your rental property will have limitations.  Consult a tax accountant for more details.
14700
The Federal Real Estate Settlement Procedures Act (RESPA) requires lenders to disclose APR, or annual percentage rate. There is only one acceptable method for Federal compliance. If your mortgage interest rate is at 5.75%, and your payment is a given amount, then the total amount of your mortgage, less any additional fees you are paying to the lender such as points, are deducted from your loan amount and the lower amount that results is used to back-calculate what the interest rate would be if your given payment were used to pay back the smaller amount. That rate is your APR. Theoretically this allows you to compare different combinations of rates and points, but in practice it isn't so useful. \n\nAn example: Your loan amount is $100,000 at 5.75%. That would make your payment for 30 years 583.57 per month. If you paid two points to the lender, then using $98,000 and a payment of 583.57 your APR would be 5.937%.
150290
Under the I T Act, yes you can claim benefit given to an individual if for reason of occupation he can not reside in the home he purchase. You can definitely allowed to have Interest deduction on loan borrowed.
459989
homestead exemption is available to owner/occupants and reduces the taxable value of your home.  one time filing is good for as long as you live there and is only good on your primary residence.  not sure what a mortgage exemption is