All About Information - Relevant to All at Some Point

TAX-DEDUCTIBLE ITEMS FOR 2022 CLOSINGS 

These items are only deductible if you itemize. They do not apply if you take the standard deduction.

 

Congratulations on your mortgage refinance or home purchase closing! Here is a general overview of some information that may be helpful to you and your CPA as you prepare your 2022 tax returns (the return you'll file by April 2023).

1

POINTS PAID ON A HOME PURCHASE IN 2022

Closing Disclosure Page 2, Section A - If the origination charges on Page 2, Section A of the Closing Disclosure include points paid to your mortgage company to reduce your interest rate, you can deduct those points in the year paid… even if they are paid by the seller. Other fees in this section (application, underwriting, processing, etc.) are NOT tax-deductible. Only bonafide points are deductible if they are expressed as a percentage of the loan amount and paid in exchange for a lower interest rate.

2

POINTS PAID ON A MORTGAGE REFINANCE IN 2022

Closing Disclosure Page 2, Section A - If the origination charges on Page 2, Section A of the Closing Disclosure include points paid to your mortgage company in exchange for a lower interest rate, you can deduct those points in the following manner:

  • You can deduct over the life of the mortgage all points paid on the portion of the mortgage proceeds that were not used for home improvements (for example, if you refinance your mortgage to reduce your interest rate, but do not take any cash out for home improvements).
  • You can deduct this year all points paid on the portion of the mortgage proceeds that were used for home improvements (if you received cash-out and are using that cash-out for home improvements). Remember, any points paid on the portion of the mortgage NOT used for home improvements must be spread out over the life of the loan. For example, assume you refinance an old $200,000 mortgage into a new $300,000 mortgage and walk away with $100,000 to be used for home improvements. In this case, 1/3 of your points are fully deductible this year and 2/3rds of your points are deductible over the life of the loan.
  • As outlined above, other fees itemized in this section are NOT tax-deductible.

 

3

PROPERTY TAXES (ACTUAL AND PRO-RATED)

Closing Disclosure Page 2, Section F - Property taxes itemized in this section are generally tax-deductible in the year they are paid. However, property tax escrows in section G are NOT tax-deductible until they are actually paid by your mortgage company to the municipality (city, state, county).

4

PRE-PAID INTEREST

Closing Disclosure Page 2, Section F - Mortgage interest is calculated in arrears. This means that your monthly mortgage payment actually covers the month that just passed. For example, your February payment covers the interest for the month of January, your January payment covers the interest for the month of December, and so on. Oftentimes, when you refinance a mortgage or buy a new home, you “skip” a month’s worth of mortgage payments. That is why you sometimes pay "pre-paid interest" or “daily interest charges” in Section F of the Closing Disclosure. These daily interest charges cover the interest for the current month. If your mortgage interest is deductible, then the pre-paid interest that you pay in this section is also deductible (this will be included in the 1098 statement that you receive from your mortgage company).

 
5

PREVIOUS YEAR POINTS NOT YET DEDUCTED

You may be able to deduct the remaining portion of the original points paid on an old mortgage if you refinanced that old mortgage in 2022. For example, assume you paid points on a refinance transaction 3 years ago. You probably were not able to deduct all the points you paid in the year they were paid. Instead, you had to spread that deduction out over the 30-year life of your mortgage. So, assume you’ve deducted 3/30ths of those points so far, and you refinanced your mortgage again in 2022. You can now deduct the remaining 27/30ths of those old points that you have not yet deducted.

6

PRE-PAYMENT PENALTIES

A pre-payment penalty paid on an old loan would be deductible on your 2022 tax returns as long as the new loan was taken out from a different lender than the old loan.

7

OTHER CLOSING COSTS

Closing costs not mentioned above are not tax-deductible. However, they are added to your “tax basis” for purpose of calculating your capital gain when you sell the property. In other words, you may be able to reduce your capital gains tax (if applicable) when you sell the property in the future because your home purchase closing costs get added to your cost basis.

DISTINCTION BETWEEN A QUALIFIED RESIDENCE AND AN INVESTMENT PROPERTY

Everything mentioned above pertains to a mortgage transaction involving a primary home or vacation home that is elected as a “qualified residence” for tax purposes. If your transaction involved an investment property, see IRS Publication 527.


PLEASE NOTE: THIS ARTICLE IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL, TAX, OR FINANCIAL ADVICE. PLEASE CONSULT WITH A QUALIFIED TAX ADVISOR FOR SPECIFIC ADVICE PERTAINING TO YOUR SITUATION. FOR MORE INFORMATION ON ANY OF THESE ITEMS, PLEASE REFERENCE IRS PUBLICATION 936.

STANDARD DEDUCTION AMOUNTS FOR 2022 TAX RETURNS:

$25,900 for married taxpayers filing a joint return.
$12,950 for single taxpayers
.

Source: Momentifi


 

Contact me for More Information at:

email:  Kathy@KathyDelbridge.com

Phone: 678-773-0651





Posted by Kathy Delbridge on January 25th, 2023 9:04 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.


Today's FACT

" Did you know that VA has nothing to do with property tax exemptions for disabled veterans, that is handled by the taxing authority (usually the county)?"


Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates back to when I was 6 years old ( I am currently 52….go ahead, do the math ), he’s been a part of over 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches REALTORS ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

20+ YEARS EXPERIENCE - Never Missed a Closing Date - DON’T intend to ever miss one!

#valoans #VAspecialist #homesforheroes  #valoanspecialist#certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday #vadisability #vataxemptions
Posted by Kathy Delbridge on October 4th, 2022 9:11 AM

Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.

Today's FACT
" Did you know that anyone can assume a VA loan and it doesn’t have to be for a primary residence?"


Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates back to when I was 6 years old ( I am currently 52….go ahead, do the math ), he’s been a part of over 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches REALTORS ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

20+ YEARS EXPERIENCE - Never Missed a Closing Date  DON’T intend to ever miss one!


#valoans #VAspecialist #homesforheroes  #valoanspecialist#certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday #valoanassumption

Posted by Kathy Delbridge on September 30th, 2022 8:55 AM
On #NationalVFWDay, take a moment to recognize all the VFW does in your community.
Members of the VFW hold a long-standing history of volunteerism in their communities. Not only have they served their country, but they continue to serve their fellow veterans, families, and communities by sponsoring scholarships, career fairs, mental wellness campaigns, and so many more excellent services. I have had the pleasure of spending time and getting to know several of the volunteers and I was sadly so misinformed of what the VFW does on a consistent basis to support our communities.


If you are looking for a way to fulfill the need for giving back and supporting a good cause, I highly recommend finding your local VFW Post. it will do your heart good and you'll fee fulfilled.

Posted by Kathy Delbridge on September 29th, 2022 9:50 AM

Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
Today's FACT
" Did you know that a low VA appraisal can be appealed at the Regional Loan Center, even if the appraiser rejected the additional Tidewater comps?"

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates back to when I was 6 ears old ( I am currently 52….go ahead, do the math ), he’s been a part of over 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches REALTORS ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

20+ YEARS EXPERIENCE - Never Missed a Closing Date DON’T intend to ever miss one!

#valoans #VAspecialist #homesforheroes #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday #vaappraisals #vaappraisalappeal #vatidewater
Posted by Kathy Delbridge on September 29th, 2022 9:26 AM


Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
Today's FACT" Did you know that VA loans can be assumed by non-veterans?"

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates back to when I was 6 years old ( I am currently 52….go ahead, do the math ), he’s been a part of over 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches REALTORS ® all over the country!
I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.
Please let me know how I can help you with you or your favorite Veteran with any VA questions.
Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.
I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.


20+ YEARS EXPERIENCE - Never Missed a Closing Date DON’T intend to ever miss one!


Posted by Kathy Delbridge on September 28th, 2022 10:35 AM

Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
Today's FACT


" Did you know that a VA borrower, who intends to rent his present residence, can use 75% of the rent to offset his payment and no reserves are required, regardless of landlord experience?"

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates back to when I was 6 years old ( I am currently 52….go ahead, do the math ), he’s been a part of over 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches REALTORS ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

20+ YEARS EXPERIENCE - Never Missed a Closing Date  DON’T intend to ever miss one!

#valoans #VAspecialist #homesforheroes #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday
Posted by Kathy Delbridge on September 27th, 2022 9:27 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.


??Today's FACT??
??" Did you know that, with today’s loan limits, a seller with a VA loan can allow the loan to be assumed and still have enough entitlement to do a 100% VA loan on the purchase of new home?"??

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math?? ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

??20+ YEARS EXPERIENCE - Never Missed a Closing Date ?? DON’T intend to ever miss one!
#valoans #VAspecialist #homesforheroes #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #vafacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday
Posted by Kathy Delbridge on September 26th, 2022 9:34 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
??Today's FACT??
??" Did you know that the Certificate of Eligibility is the only way VA has to determine eligibility for the home loan program?"??

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math?? ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

??20+ YEARS EXPERIENCE - Never Missed a Closing Date ?? DON’T intend to ever miss one!
#valoans #VAspecialist #homesforheroes #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothisday #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday
Posted by Kathy Delbridge on September 23rd, 2022 11:15 AM

I have always been a huge fan of Zig Ziglar and his some Tom Ziglar is continuing  Zig's legacy. I recently purchase one of his books to read and from time to time I get little nuggets of information in my inbox.

I REALLY did like today's because it's all about habits and I'm currently striving to create better habits and squash my bad habits.

Here's today's message from Tim Ziglar.

  • People who achieve balanced success are self motivated.
  • Where does self-motivation come from?
  • Confidence. Confidence creates self-motivation.
  • Where does Confidence come from?
  • Competence. Competence creates Confidence.
  • Where does Competence come from?
  • Habits. Habits in doing the work, even doing the work poorly at first until your skill increases, create Competence. 
  • Decide what you want to be successful in and then make it a habit to do the work that makes you competent in that area. 
  • Confidence, self-motivation and success will be the fruit.

Choose To Win!

image

Posted in:Personal Improvement and tagged: Better Habits
Posted by Kathy Delbridge on September 22nd, 2022 8:55 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.

??Today's FACT??
??" Did you know that a student loan payment may be omitted, on a VA loan, if payments are scheduled to begin more twelve months after closing?"??

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math?? ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

??20+ YEARS EXPERIENCE - Never Missed a Closing Date ?? DON’T intend to ever miss one!
#valoans #VAspecialist #homesforheroess #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothis #letsmakeadifference #hugaveteran #VAFacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday
Posted by Kathy Delbridge on September 22nd, 2022 8:28 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.

??Today's FACT??
??" Did you know that if a veteran borrower has a part time job, the borrower must have had it for at least two years to be counted as stable income?"??

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math?? ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

??20+ YEARS EXPERIENCE - Never Missed a Closing Date ?? DON’T intend to ever miss one!
#valoans #VAspecialist #homesforheroes #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothis #letsmakeadifference #hugaveteran #vafacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference #vafactoftheday
Posted by Kathy Delbridge on September 21st, 2022 9:46 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
??Today's FACT??
??" Did you know that a veteran who has applied for disability and has not received it prior to closing her/his loan, will receive a refund of the funding fee, once the disability is approved?"??

Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math?? ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!

I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.

Please let me know how I can help you with you or your favorite Veteran with any VA questions.

Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.

I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.

??20+ YEARS EXPERIENCE - Never Missed a Closing Date ?? DON’T intend to ever miss one!

#valoans #VAspecialist #homesforheroes #certifiedmortgageplanningspecialist #ServingVeterans #supportveterans #letsdothis #letsmakeadifference #hugaveteran #vafacts #kathydelbridgemortgageprofessional #homesforheroesmortgagespecialist #successmortgagepartners #partnersmakingadifference
Posted by Kathy Delbridge on September 20th, 2022 9:23 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
??Today's FACT??
??" Did you know that VA has no 90 day flip rule?"??
Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math?? ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!
I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.
Please let me know how I can help you with you or your favorite Veteran with any VA questions.
Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.
I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.
??20+ YEARS EXPERIENCE - Never Missed a Closing Date ?? DON’T intend to ever miss one!


Posted by Kathy Delbridge on September 19th, 2022 9:07 AM
Every day I get a VA FACT of the Day from our VA NINJA at Success Mortgage Partners.
??Today's FACT??
??" Did you know that a VA condominium approval never expires, once approved always approved?"??
Our VA fact of the day comes from John McDade, who is a VETERAN and our National Director of VA Lending. John's experience dates to when I was 6 years old ( I am currently 52….go ahead, do the math??  ), he’s been a part of 5000 closed VA loans, and he is a “Certified Veterans Lending Specialist” Instructor, and he teaches Realtors ® all over the country!
I am sharing this FACT of the Day and will do every weekday, because I am PASSIONATE? about helping Veterans and closing VA loans is one of my favorite loans to close, along with First Time Home Buyers.
Please let me know how I can help you with you or your favorite Veteran with any VA questions.
Thank you today and every day to ALL our veterans! I know that Freedom is not FREE and I will be forever GRATEFUL for a Veteran’s service.
I am ready to serve a Veteran and help them obtain the loan they need, with utmost respect during the process and with the service of excellence they deserve.


Posted by Kathy Delbridge on September 15th, 2022 8:45 AM

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