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If these fees are insignificant they can be expensed at the time incurred. On larger loans these fees can be materially significant. In these cases, the origination fees associated with the loan can be capitalized and amortized over the life of the loan.
Origination fees as tax deductions. Depending on the terms of the mortgage, it is possible to use your loan origination fee as a tax deduction. If the fee is deductible, it can be deducted either the year the loan was first taken out or each year over the course of the loan.