Loan fees are generally not tax deductible as they are considered a cost of obtaining credit rather than an interest expense. However, certain fees related to obtaining a mortgage may be deductible in some cases. For example, points, which are fees paid to the lender to lower the interest rate on a mortgage, may be deductible in the year they were paid. Other fees related to obtaining a mortgage, such as appraisal fees, title insurance fees, and attorney fees, are generally not deductible.
It is important to note that the tax deductibility of loan fees and other expenses can depend on a variety of factors, such as the type of loan, the purpose of the loan, and the jurisdiction in which you live. If you have questions about the tax deductibility of loan fees or other expenses, it is recommended that you consult with a qualified tax professional or financial advisor who can provide guidance specific to your situation.
