erikan777
New Member

The amount on my 1098 section 6 and my HUD 1 section 803 differ. I'm confused on what amount to enter.

Amount on 1098 sect. 6 is $2592.00
 Hud 1 sect 803 is $3504.00
which amount should  I enter and why? Thanks!
PaulaM
Expert Alumni

Deductions & credits

Form 1098 box 6 is listing the points you paid for your mortgage. Enter box 6 amount in TurboTax. A point represents a % of your mortgage loan amount.

The amount listed on line 803 is your adjusted origination charges. Not all of your origination charges are deductible. Only the points included in that figure are deductible.

Other Items on closing disclosure form that may be deductible:

  • interim interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment). 
  • real estate taxes charged to you. 
  • points - On a refinance they need to be amortized over the life of the loan; unless the points were used to improve your main home.
  • private mortgage insurance but, if prepaid, only the amount allocable to this year based on an 84 month amortization. 

Other fees, such as commissions, attorney fees, preparation of deed, abstract fees, owner title insurance, recording fees are added to the basis of your home, and not deductible.

https://www.irs.gov/pub/irs-pdf/p936.pdf

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View solution in original post

Deductions & credits

I have this discrepancy too. I refinanced my home loan and Hud-1 has $9500 for Point amount but 1098 has $2500. Would I expect to see on the next 1098 any % of $9500. I read your answer but it was unclear. It would be appreciate it if I have a simple answer by numbers.