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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, ,
Tue Dec 9, 2008
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!
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Tina C. Wong, Agent, SAN BRUNO, CA
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.
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Scott Slocum, , Fort Myers, FL
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®
Licensed Real Estate Broker Associate
Florida Future Realty, Inc.
2816 Del Prado Blvd South Unit 2
Cape Coral FL 33904
Direct: 239-340-1384 - Search ALL the Homes For Sale - Important Real Estate Information & More
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