Prepaid mortgage interest and property tax held in escrow
is not deductible.
Only pro-rated
amounts for interest and property taxes (based on a daily amount from your
closing date until your first payment) are deductible.
For a new loan or refinance, mortgage
interest paid (including origination fee or "points"), real estate
taxes, and private mortgage insurance (subject to limits) are deductible.
On a refinance, you may need to amortize
an origination fee (if paid) over the life of the loan. TurboTax will walk you
through this process.
Enter
the above expenses in the following areas:
1. Mortgage interest paid: Federal
Taxes>Deductions &Credits> Your Home, select Mortgage Interest, Refinancing, and Insurance
2. Points (or Loan
Origination Fee): Federal Taxes>Deductions &Credits> Your
Home, select Mortgage Interest and Refinancing, and Insurance- (See Did you pay points in 2016 when
you took out the loan?) page
3. Real Estate Taxes: Federal
Taxes>Deductions &Credits> Your Home>Property Taxes
4. Mortgage Insurance: Federal
Taxes>Deductions &Credits> Your Home> Mortgage Interest, Refinancing, and Insurance
Some of the above expenses may be designated on your
HUD-1 settlement statement.
See
What Information Do I Need From My HUD Statement
