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Are home loan modification fees tax-deductible?

We paid $1500 to a compny to negotiate the terms of a home loan modification (unsuccessfully). Is this fee tax-deductible? by Brandy from Fontana, California. Jan 21st 2010 Reply

Leo Harvey (LHARVEY)
#3 ranked lender in Pennsylvania - 141 contributions

Our Tax professional says no. That fee is similar to a legal fee for other services which also is not deductible. The tax mod company should have refunded the fee if they were not successful like most reputable companies do.

Jan 22nd 2010
Debra Clark (Debra Clark)
#130 ranked lender in California - 42 contributions

I do not believe they are, but you should really discuss with your tax accountant.

Jan 21st 2010
J Martin (jmarr91)
#10 ranked lender in Georgia - 25 contributions

Not deductible. Also, if the company is not reputable, I would report them. Did you sign an disclosure agreement concerning their fees?

Mar 10th 2010
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