If by prepaid interest you mean interim interest, then you can deduct it. If you mean points on a refinance will need to be amortized over the life of the loan, unless
the loan was used to improve your main home.
If you paid points or
interest on your refinance in 2016, enter the expenses in the same section as
your original lender. If you did not receive a 1098 for these expenses,
enter as if you did receive a 1098. It will flow to the
correct line on your schedule A.
To navigate to the section:
- In
your open return, select My Account
- Tools
- Topic
Search
- Type '1098' in
the box, then select GO
https://www.irs.gov/pub/irs-pdf/p936.pdf
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