mortgage point deduction

Forum|Forum|3 years ago
February 9, 2023
7 replies
38 views

Turbo tax is making me deduct my mortgage points over 30 years, why? Is there a flaw in the system as i have checked the box to deduct this year in full?

Cynthiad66

Level 14

You can deduct the points in full in the year you pay them, if you meet all the following requirements: Your main home secures your loan (your main home is the one you live in most of the time). Paying points is an established business practice in the area where the loan was made.

For more information click on this link: Home Mortgage Interest/points

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dsb63Author

Level 2

Thank you, yes i meet all the requirements. My issue is the turbo tax software is auto calculating a 30 year pro ration on the points. Any thoughts on how to change to get it to apply all points to the current year of the purchase?

MarilynG

Level 15

On a second home, points can only be deducted over the life of the loan. The same is true for refinances, except in cases where you used a portion of your refinance proceeds to improve your home. In that case, the points related to the home-improvement portion of the loan can be deducted in the year you paid them.

If you refinanced with the same lender, any undeducted points left over from the first mortgage will be deducted over the life of your new loan. But if you refinanced with a new lender, any leftover undeducted points can be deducted in the year of the refinance.

When you get to the Did you have any home loans? screen in the Deductions Credits section, we'll walk you step-by-step through your mortgage, including points and refinances.

Click this link for more detailed info on Mortgage Points.

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