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frankq
New Member

My 1098 shows that $8560 for points on my home purchase. The seller also contributed an additional $10,000 for points which is included in my closing disclosure.

Can we add the additional seller point contribution to our deduction?
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TomYoung
Level 13

My 1098 shows that $8560 for points on my home purchase. The seller also contributed an additional $10,000 for points which is included in my closing disclosure.

The IRS says "Yes":

"The buyer may deduct points paid by the seller, provided the buyer subtracts the amount from the basis or cost of the residence.

https://www.irs.gov/taxtopics/tc504.html

Tom Young



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1 Reply
TomYoung
Level 13

My 1098 shows that $8560 for points on my home purchase. The seller also contributed an additional $10,000 for points which is included in my closing disclosure.

The IRS says "Yes":

"The buyer may deduct points paid by the seller, provided the buyer subtracts the amount from the basis or cost of the residence.

https://www.irs.gov/taxtopics/tc504.html

Tom Young



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