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Level 3
posted Jun 4, 2019 3:29:25 PM

Can I deduct closing costs on a 2nd home?

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1 Best answer
Intuit Alumni
Jun 4, 2019 3:29:26 PM

The prepaid property taxes and prepaid interest are deductible for a second home.  If you paid points for a second home, the points can only be deducted (amortized) over the life of the loan.

The remaining closing costs are not deductible however they should be added to the cost basis of the home.

2 Replies
Intuit Alumni
Jun 4, 2019 3:29:26 PM

The prepaid property taxes and prepaid interest are deductible for a second home.  If you paid points for a second home, the points can only be deducted (amortized) over the life of the loan.

The remaining closing costs are not deductible however they should be added to the cost basis of the home.

Level 1
Aug 25, 2019 4:03:19 PM

Where on the tax return would I enter the amount for amortized points (spread over the life of the loan) ?