Yes
VA funding fee. Thanks for the response. I faxed the IRS back a response quoting again portions of IRS pub 936 that the VA funding fee was fully deductible in 2009 along with e-mails from Chase that they do not put funding fees on their. 1098s and an e-mail from the VA that they do not issue 1098s. · just now. Report Abuse. The VA funding fee is fully deductible in the year that you closed on the mortgage, unlike most prepaid insurance fees which must be amortized. If it doesn't show up on your Form 1098 it is still deductible and will show on your HUD-1 closing statement. Source(s): IRS Pub 936, page 7, middle column. The VA Funding Fee is usually combined with the total amount of the VA Home Loan, it is a form of mortgage insurance (not to be confused with property insurnace). VA funding fee (response from IRS). I received a reply from the IRS today on the original subject of the VA funding fee deduction. The letter states we're pleased to tell you that the information you provided resolved the tax issue in question and that our inquiry is now closed. The amount due is $0.00. Thanks for the response. I faxed the IRS back a response quoting again portions of IRS pub 936 that the VA funding fee was fully deductible in 2009 along with e-mails from Chase that they do not put funding fees on their. 1098s and an e-mail from the VA that they do not issue 1098s. This is good information to share. Upfront MIP – Single Premium. An upfront MIP, paid at closing, is tax deductible over a period of time. The IRS permits a home buyer to deduct FHA/USDA/VA upfront mortgage insurance/funding fee premium as long as the deduction is taken over a period of 84 months. One-seventh of the funding fee paid at closing can be deducted each year for seven years unless the home is sold.  Newport News. A: Your question indicates that you think that the VA funding fee is treated in the same manner as points.. However, the VA funding fee is a fee; it is not points. You therefore are not allowed any deduction for the VA funding fee at any time. In the case of a VA mortgage, the purchaser does not pay any point In the 2013 tax year, you couldn't deduct any of your funding fee if your adjusted gross income exceeded $54,500 if you were single or $109,000 if you were married and filed a joint return.  Is a VA funding fee added to the loan at closing tax deductible? Answer: Sue-The following information comes from IRS Publication 936: Mortgage Insurance Premiums You can treat amounts you paid during 2009 for qualified mortgage insurance as home mortgage interest. Mortgage insurance provided by the Department of Veterans Affairs is commonly known as a funding fee. If provided by the Rural Housing Service, it is commonly known as a guarantee fee. The funding fee and guarantee fee can either be included in the amount of the loan or paid in full at the time of closing. The other point ($1,000) was a fee for services and is not deductible.Example 2. The facts are the same as in Example 1, except that Bill used $25,000 of the loan proceeds to improve his home and $75,000 to repay his existing mortgage. Bill de-ducts 25% ($25,000 ÷ $100,000) of the points ($2,000) in 2014.  The catch is the FHA funding fees: the mortgage insurance you have to pay the agency. At the time of writing, the fees include an upfront mortgage insurance premium (UFMIP) equal to around 1.75 percent of the loan amount. You also make smaller annual premium payments over the life of the loan.  Deduct VA mortage insurance (VA funding fee). I deducted a VA funding fee I paid in '09 on my 2009 tax return. According to publication 936, VA mortgage insurance is known as a funding fee and is fully deductible in the year paid as qualified mortgage insurance. Thanks for the response. I faxed the IRS back a response quoting again portions of IRS pub 936 that the VA funding fee was fully deductible in 2009 along with e-mails from Chase that they do not put funding fees on their. 1098s and an e-mail from the VA that they do not issue 1098s.
http://www.asktaxguru.com/6676-deduct-va-mortage-insurance-va-funding-fee.html https://answers.yahoo.com/question/index?qid=20080202091959AAOLKNB http://www.asktaxguru.com/6676-deduct-va-mortage-insurance-va-funding-fee.html http://mortgageporter.com/2013/01/mortgage-insurance-tax-deduction-extended-through-2013.html http://articles.dailypress.com/1990-01-29/business/9001290120_1_deduction-non-resident-state-income-tax http://www.ehow.com/info_8534372_va-funding-fee-tax-deductible.html http://blog.oregonlive.com/taxes/2010/02/can_i_deduct_the_va_funding_fe.html https://www.irs.gov/pub/irs-pdf/p936.pdf http://www.ehow.com/info_8508764_fha-funding-fees-tax-deductible.html http://www.asktaxguru.com/6676-deduct-va-mortage-insurance-va-funding-fee.html
funding fee deductible