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Anthony, Home Buyer in California

Is Yield Spread Premium Tax Deductible?

Asked by Anthony, California Tue Dec 9, 2008

Is Yield Spread Premium Tax Deductible? (the bank paid my mortgage broker with ysp)

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Hi Anthony - YSP is the commission that a bank pays the broker outside of the transaction. This would not be an item that is tax deductable and you did not directly pay their commission. If there was any origination or discount fees, they would be deductible. I am no accountant and it always a great idea to consult with a professional who specializes in the area in which are concerned about.

When preparing your taxes, it would be a great idea to take along your closing statement so the preparer can review the information. Make it a great day!
1 vote Thank Flag Link Tue Dec 9, 2008
It would be best consulting your CPA or tax attorney of this question and no realtor should be answering this unless the realtor is a tax advisor because we are not the expert on this field which might give you wrong advice.
0 votes Thank Flag Link Tue Dec 9, 2008
Anthony... as a past mortgage broker I don't believe you can claim the YSP that was paid to your mortgage broker. You should be able to claim pre-paid interest, points, origination fees and possibly your MIP/PMI.

The YSP is basically a commission the mortgage professional is paid from the lender who funded the loan so you really don't have any claim to those funds.

Scott Slocum, REALTOR®
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Florida Future Realty, Inc.
2816 Del Prado Blvd South Unit 2
Cape Coral FL 33904
Direct: 239-340-1384
scottslocum@floridafutureagents.com
http://CapeCoralRealEstateandLand.com - Search ALL the Homes For Sale
http://Cape-Coral-Real-Estate-Blog.com - Important Real Estate Information & More
0 votes Thank Flag Link Tue Dec 9, 2008
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