can i deduct the fees for a loan modification

This is a question best answered by your tax advisor/tax preparer. I am also a tax preparer, though, so I'll give you my general understanding of the rules you're curious about. First, the information you are looking for can be found in IRS Publications 936 and 530. Since you did a loan modification, it is my assumption you're talking about your primary residence, so those are the tax rules that will apply. That being the case, you'll be able to see that mortgage interest is typically deductible on the Schedule A, depending on your circumstances; that won't change with your modified mortgage. As for the fees, they are only deductible when they are expressed as a percentage of the loan amount, usually as an origination fee or discount fee (both are known as points), which typically is not the case with modifications. Modification fees from third party services would most likely be classified as legal fees, and those are only deductible when it relates to your income. There may be another way, specific to your circumstances, that you can deduct these fees, but that will need to be determined by your tax advisor/preparer.

That would definitely be a question for your accountant, CPA or tax preparer, however, as Brett mentions below, because modification fees are not points paid during a refinance or purchase and it is not interest, I would guess no.

My first guess would be no. However, you will want to consult with your/a tax prepare to get the definite answer.

Talk to your CPA, Accountant or Tax Preparer on this question.

With Loan modification it would be best to contact your CPA to talk about any updates tax laws for wright offs. Also call up your past lender to get the closing statement so you can show all the fees from the last loan.Jesse Stroup Mortgage Professional | Mortgage ManTwitter: @jessestroup

Hello,You will definitely need to contact your CPA/Accountant for any tax questions. thank you