1. A cash basis taxpayer will deduct expenses in the year paid. You have the closing statement as proof of the expenditure. Although, if it is over $600, the bank should have issued a 1098.
2. In the program, under deductions and credits follow these steps:
- Select mortgage interest and property taxes
- Did you get a 1098, answer no
- Lender's name, answer your bank or closing statement
- Amount, enter your amount paid
- EIN or tax id, it may be on the closing statement or you have to ask google.
Caution - the points paid will be spread over the life of the loan and is not deductible. Only the prepaid interest is deductible here.
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