Rev. Rul. 57-400

`Finders fees' (buying commissions) paid by mutual savings banks, building and loan associations, cooperative banks and other classes of banks, to brokers, title companies, and other third parties for their introduction of acceptable applicants for mortgage loans, constitute a part of the acquisition cost of the loans which must be capitalized and amortized over the lives of the mortgage loans made to such applicants. See section 39.113(b)(1)-4(c) of Regulations 118, applicable under the Internal Revenue Code of 1954 by virtue of Treasury Decision 6091, C.B. 1954-2, 47, which, although referring specifically to mortgages purchased, acquired, or originated at a premium by mutual savings banks, building and loan associations, and cooperative banks, provides the foregoing rule with respect to the treatment of finders fees (buying commissions) that is deemed equally applicable to such fees paid in connection with mortgage loans originated by any class of bank. However, a taxpayer who has deducted commissions in full for a taxable year which has become barred from adjustment of tax liability by the expiration of the statute of limitations may not, for a subsequent year or years, again deduct the same commissions to the extent of any pro rata portion relating to such year or years. See section 39.23(a)-1 of Regulations 118, applicable under section 161 of the 1954 Code; section 7852(c) of the 1954 Code; and G.C.M. 7852(c) of the 1954 Code; and G.C.M. 23587, C.B. 1943, 213.