News & Events

News & Events

8.1.2007

The Washington Court of Appeals Has Foreclosed a Potential B&O Tax Deduction for Mortgage Lenders Who Sell Loans on the Secondary Market

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In a unanimous decision in HomeStreet, Inc. v. Dep’t of Revenue, a three-judge panel of the Washington Court of Appeals, Division Two, refused to allow a residential mortgage lender to take a business and occupation (“B&O”) tax deduction based on the amounts the lender received as compensation for servicing the home loans it originated and subsequently sold on the secondary market. The Court expressly noted that the availability of this deduction was an issue of first impression. View full article (PDF).