I closed on a new home but didn't move in yet, can I still deduct MIP and Mortgage interest

[xmasbaby0]

When did you close?  Did you pre-pay mortgage interest at the closing?

[jeffperlman55]

thank you, hold on a moment closed 11/1/2018, but didn't move in until 2019, received form 1098 with box 5 mortgage insurance premiums filled in

[jeffperlman55]

I thought it was part of the closed, and/or pre-paid mortgage interest

[xmasbaby0 · Accepted solution]

Mortgage insurance premiums are not deductible so there is nothing to enter about that.  Congress has not renewed private mortgage insurance as a deduction for 2018.

[Texas Roger]

You can claim whatever was paid in 2018. Most expenses at closing on the purchase or refinance of a home are added to the cost of a home and are not deductible but are added to the cost basis of the home.  There are a few exceptions - the following would be deductible:

1. Interest paid at the time of purchase (the charge at closing would normally be done for interest up to the date of first payment.) This is sometimes included in the 1098 from the new lender.

2. Real estate taxes charged to you and not reimbursed by seller

3. Points or origination fees.  On a refinance they need to be amortized over the life of the loan unless the points were used to improve your main home.

NOTE: The private mortgage insurance deduction expired and was not extended for 2018.

4. Private mortgage insurance costs but, if prepaid, only the amount allocable to this year based on an 84 month amortization.

Title fees, real estate commissions, documentary stamps, credit report costs, costs of an abstract, transfer taxes, attorney fees, etc. are not deductible, but are added to the cost of the property.