Discussion:"POC" on HUD statement
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Discussion Forum Index --> Tax Questions --> "POC" on HUD statement
| 22 March 2007 | |
| Client purchased a new home and paid 1/2 a point ($950)to a mortgage lender to lock in a certain interest rate on the new mortgage loan. It shows on the HUD statement as Line 807 "Extended Lock Fee" with notation POC: B950.00
Not sure what "POC" means... but this appears to me to qualify as being deductible this tax year as 'points'. Am I right? Jim | |
| 22 March 2007 | |
| POC means Paid On Closing (to whoever). An extended lock fee is an additional loan fee to secure the interest rate for an extended amount of time and is not a loan origination fee.
Therefore, not deductible. | |
| 22 March 2007 | |
| Smells an awful lot like points to me. I would deduct it. | |
Death&Taxes (talk|edits) said: | 22 March 2007 |
| I thought it meant Paid Outside Closing, meaning it could and usually is paid before the settlement. | |
| 22 March 2007 | |
| My experience with POC is that it means "Paid Outside of Closing." It's a memorandum entry not in the borrower's or seller's columns that indicates something a party has paid that is not part of the settlement funds. Most commonly it's been a survey or appraisal. And it doesn't affect its tax treatment as a deduction, cost of purchase/sale or additional basis. -- Larry Hess, CPA, Albuquerque, NM - Talk to me | |
| 22 March 2007 | |
| My mistake - it is Paid Outside of Closing, Lhh is correct. | |
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