JohnB5677
Expert Alumni

Deductions & credits

You should combine the two amounts on the form stated above.

 

You can deduct in the year they're paid. Origination fees and/or points paid on a purchase. The IRS considers “mortgage points” to be charges paid to take out a mortgage. They may include origination fees or discount points and represent a percentage of your loan amount.  Points that don't meet these requirements may be deducted ratably over the life of the loan.

 

Keep a copy of the 1098 and the closing document with your tax return in the event it is questioned.

 

Please see: Topic No. 504 Home Mortgage Points

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