topic can i deduct points paid on a refinance in Get your taxes done using TurboTax

can i deduct points paid on a refinance

pruybal4 — Wed, 24 Mar 2021 01:11:26 GMT

I paid points on a refinance and within 10 days my loan was sold. Can I take the points I paid before the loan was sold to a new leader?

Re: can i deduct points paid on a refinance

fanfare — Wed, 24 Mar 2021 01:33:18 GMT

if someone else owns your loan now, that doesn't change the terms of your loan. You can ignore that event, unless you get two 1098s

Re: can i deduct points paid on a refinance

gloriah5200 — Wed, 24 Mar 2021 01:38:58 GMT

No, not as a deduction on your current year return.

Points paid on a refinance are generally amortized over the life of the loan, not deducted in the current year and that should continue until the loan is paid in full.

When a loan is sold from one lender to another, the borrower doesn't generally have out-of-pocket closing costs again, the loan stays the same but it is just paid to a different lender. So, no, your points from the refinance were not paid off when your loan was sold to a different lender, and especially not paid off by you.

Please refer to the following link for additional information:

Can I deduct points on my cash out refinance

Re: can i deduct points paid on a refinance

pruybal4 — Wed, 24 Mar 2021 01:40:23 GMT

I didn't get a 1098 for the points I paid I just received a 1098 from the new leader, however it didn't show points and I wanted to take the deduction for the points.

Re: can i deduct points paid on a refinance

gloriah5200 — Wed, 24 Mar 2021 01:52:57 GMT

The same points from the refinance with the other lender still apply to the life of the loan. When it is points paid at a refinance, then you must remember to amortize them over the life of the loan. They may not report them on Form 1098 from the new lender.