My Mortgage lender sold my loan to another lender. How do I show the points? Do I keep them on the first 1098, transfer them to the 2nd, or show on both?

[DawnC · Accepted solution]

Keep them where they are already reported.  Enter both 1098 forms in TurboTax exactly as you see them.   

On a second home, points can only be deducted over the life of the loan. The same is true for refinances, except in cases where you used a portion of your refinance proceeds to improve your home. In that case, the points related to the home-improvement portion of the loan can be deducted in the year you paid them.

If you refinanced with the same lender, any undeducted points left over from the first mortgage will be deducted over the life of your new loan. But if you refinanced with a new lender, any leftover undeducted points can be deducted in the year of the refinance.

When you get to the Did you have any home loans? screen in the Deductions Credits section, we'll walk you step-by-step through your mortgage, including points and refinances.

Can I deduct mortgage points?