I refinanced my house last year. I financed my property taxes and my points. Can I deduct this since I am paying for it?

[hurtadovega]

The 1098 I received says no Property taxes or points were paid because both of these items were financed in the refinance.

[KrisD15]

Yes, if the taxes were paid, but you included that amount in the refinanced loan, you can claim the taxes that were paid. 

HOWEVER

because part of the new loan was used to pay the taxes, the interest on that portion of the loan cannot be claimed as home mortgage interest. 

Example, the loan was 100,000. You refinanced for 105,000 and 5,000 went to pay the property tax. You can only claim the interest on the 100,000 portion of the loan. 

The points will be included since points are basically a form of interest. 

[hurtadovega]

Thank you. My 1098 says no property taxes were paid because it was all financed and no points were paid because that was financed also as I have a lot of equity. I can see on my closing statement how much the property taxes and the points were. How do I input that in TurboTax? I follow what you are saying that the interest of the taxes and points financed can't be deducted, but how do I calculate that since the 1098 just tells me how much interest was paid overall and doesn't divide it up?

[Vanessa A]

You have two options.

As you walk through the steps of entering the refinance, you will be given the option to let TurboTax calculate it or you can calculate it.

1.  Answer yes to is this a HELOC or refinance
2. Say yes, it was used for things other than paying off your existing loan
3. Say No, I used some or all of this loan on a different home or something other than a home
4. Then select either help me figure this out or I'll enter it myself

If you choose help me figure it out, then you will just enter the amount you took out for the taxes and anything else and your balance on the loan as of 12/31/24.