topic Home Refinance without 1098 in Deductions & credits

Home Refinance without 1098

deepkpatel — Tue, 30 Mar 2021 18:28:50 GMT

I refinanced my home in late December and my new lender promptly sold my loan to another lender in January. So I never made any payments to the lender who refinanced my property. They never sent me a 1098. I'm trying to input my loan origination points that I paid on the refinance, but I don't know how to do that without a 1098.

Re: Home Refinance without 1098

MaryM428 — Tue, 30 Mar 2021 18:52:18 GMT

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.

https://www.irs.gov/pub/irs-pdf/p936.pdf

Re: Home Refinance without 1098

Carl — Tue, 30 Mar 2021 18:55:14 GMT

Understand that you flat out will not receive a 1098 for the 2020 tax year. That's because your first mortgage payment was not due until 2021. Therefore, all your allowed deductions (namely points (prepaid interest) and property taxes) that you can deduct for 2020, are on your closing documents you received at the closing.