On your 2019 return, you would have the option to deduct all of the points or amortize them over the life of the loan. If you meet all the criteria here, you can either deduct all your points in the year you paid them or deduct them in equal increments over the life of the loan. Either way, you'll need to itemize to get the deduction. If you want to deduct all of the points, that would have to be done on an amended 2019 tax return. Because the origination date is 2019, you should see the following 2 options regarding the points on the original loan:
- I am amortizing (use this option if you are not going to amend your 2019 return to deduct all of the points on that return)
- I have no points to deduct (use this option if you are going to amend the return to claim all of the points in 2019)
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.
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