Deduction: 1098 shows 8900 in points

camprc · ‎February 20, 2021

Hi! I refinanced my loan and I paid 8956.88 to the lending company when I closed on the loan. When I put the points into turbo tax it did some calculation that it was spreading the points over the life of the loan. Why? Did I miss a step or is this something new? In the past, TT only spread the points out over the life of the loan if I rolled the points into the loan itself. What did I do wrong?

JotikaT2 · ‎February 20, 2021

When you refinance a loan, the points are not written off. Instead, they are amortized over the life of the new loan.

Please see the link below for more details on when points can be deducted immediately or when they must be amortized over the life of the loan.

Deductible points

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

JotikaT2 · ‎February 20, 2021

When you refinance a loan, the points are not written off. Instead, they are amortized over the life of the new loan.

Please see the link below for more details on when points can be deducted immediately or when they must be amortized over the life of the loan.

Deductible points

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Expert does your taxes

Do it yourself

Resources

Support

Deduction: 1098 shows 8900 in points