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Deductions & credits
Add a new lender to enter points as if you received a 1098 form.
Look to your closing disclosure form for other possible deductions. Point are listed in the Loan Cost section A. Interest, real estate taxes and private mortgage insurance are listed in the Prepaids section F.
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). You may receive a 1098 form as well.
- 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.
March 30, 2021
11:52 AM
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