Box 6 is points - which is basically pre-paid interest. If this is on your primary residence, they're fully deductible as a SCH A itemized deduction. You can include that amount in your mortgage interest paid.
Otherwise, if this is on rental property or other business use property, those points are amortized and deducted (not depreciated) over the life of the loan.
ENTERING POINTS
here's how to enter the points in the Assets/Depreciation section of SCH E.. (does not apply to entering the property itself, or any other property assets.)
- Select the Add and Asset button. (go straight to the asset summary if presented that option)
- Select Intangibles/Other Property, then continue.
- Select Amortizable Intangibles, then continue.
- Describe it as something like "2021 Financing Fees". Then enter the amount, and the closing date of the loan. Then continue.
- Select "purchased new", then "100% business use", enter the closing date of the loan (again), then continue.
- Code section is 163:Loan Fees, then continue.
- Useful Life in Years is the length of the loan, then continue.
- You can "show details" if you like. Then continue, and that does it
