Mortgage points- construction to perm loan - amortization

[neoatmn]

Hi,

I bought a new home from a builder using construction to perm loan last September 2023 - new construction was complete only in Mar 2024.  I paid $7K in mortgage points for the new construction and I got a 1098 from the lender.  I added this entry to get tax benefits to turbotax premier desktop version, TT automatically amortizes over 15 years (which is the loan term) - I want to get the full tax deduction in 2023 and don't want to amortize over the duration of the loan.

BTW I lived in a townhome(primary residence) throughout 2023 since new construction was not complete until March 2024. I also paid the mortgage on my townhome and entered in TurboTax before entering mortgage points for the new construction.

The only way I can get the full deduction on the NEW construction is I have to enter 1 year for the Length of loan which is not something I want to do since it is not true. Please help! Looks like a TT software limitation!

[zomboo]

Did you specify the newly constructed home as your main home and the town home as your second home? If not, try doing that.

[neoatmn]

Newly constructed home was not complete until mar 2024. I lived in my townhome all year

[zomboo]

That doesn't matter.

[zomboo]

I need to add the following. You don't have to live in the home for it to be your main home. However, there are other rules that need to be followed in order to deduct the full amount of points in the year paid. The biggest test you have to meet is providing some funding when getting the loan. Pub 936:The funds you provided do not have to be applied to the points. They can include a down payment, an escrow deposit, earnest money, and other funds you paid before closing for any purpose. You cannot have borrowed these funds from your lender or mortgage broker.

You may find it helpful to go on IRS.gov, select Help, and select the Interactive Tax Assistant (ITA). Scroll down and select 'Can I deduct mortgage-related expenses?' under 'Deductions'. When asked what type of mortgage related expenses, select points.