turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

I closed on a home at the end of November 17' but didn't receive a 1098 form how do I determine what is tax deductible?My closing docs show Principle & Interest combined.

I asked our original lender (before it was sold to someone else) if we'd receive a 1098, he said no and that all the information is in the closing cost documents. I see all the fees broken down except for interest and principal they are combined. 

I also don't know how to enter any of this into turbo tax as it asks for. Hoping someone had a similar situation.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply

I closed on a home at the end of November 17' but didn't receive a 1098 form how do I determine what is tax deductible?My closing docs show Principle & Interest combined.

You didn't receive  a 1098 since your first regular mortgage payment would have been due 1/1/2018.  But there are some 2017 expenses you can deduct.


Most closing costs are not deductible.  Instead, they are added to the cost of the house and may reduce your capital gains when you sell.  These closing costs are deductible in the year you closed:

1. Daily mortgage interest from the day you closed to the end of the month.  Shown on your closing document, this interest may not be included on your 1098. You can add it if it wasn't included. 

2. Property taxes.  Generally, the seller has prepaid a year's worth of property taxes and the buyer pays a credit to the seller for the amount of tax that is allocated to the days you will own the home.  That property tax credit is deductible as if you paid it directly to the city or county.

3. Mortgage "points." Origination fees or points are considered a form of mortgage interest and must be deducted over the life of the loan, unless you meet certain tests.  If you paid points, turbotax will ask you questions to see if you can deduct them all at once (in the year you closed) or if you have to spread them out.  Origination fees are considered points if they are a percentage of the loan amount (not a flat fee) and if they are not assigned to any specific services like document processing, attorney fee, or other specific costs.

4. Mortgage insurance (PMI, MIP) can be deducted for 2017 since this deduction was restored by Congress.  Lump sums must be divided by 84 and you deduct the number of payments worth you made in 2017.  (The lump sum VA Funding fee or Rural Housing fee may be deducted in full in the year paid.)  Mortgage insurance deduction is subject to an income limit.


Your down payment is not deductible, that's you paying for the house.  Money put into escrow is not deductible until it is actually used to pay a property tax bill. Until then it's still technically your money.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question