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shadonline
New Member

Prepaid mortgage interest from refinance

Where do I report this?  The lender did not provide a 1098 form, and sold the mortgage shortly after closing.
1 Best answer

Accepted Solutions
PaulaM
Expert Alumni

Prepaid mortgage interest from refinance

If by prepaid interest you mean interim interest, then you can deduct it. If you mean points on a refinance will need to be amortized over the life of the loan, unless the loan was used to improve your main home. 

If you paid points or interest on your refinance in 2016, enter the expenses in the same section as your original lender. If you did not receive a 1098 for these expenses, enter as if you did receive a 1098. It will flow to the correct line on your schedule A. 

To navigate to the section:

  • In your open return, select My Account
  • Tools
  • Topic Search
  • Type '1098' in the box, then select GO

https://www.irs.gov/pub/irs-pdf/p936.pdf

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1 Reply
PaulaM
Expert Alumni

Prepaid mortgage interest from refinance

If by prepaid interest you mean interim interest, then you can deduct it. If you mean points on a refinance will need to be amortized over the life of the loan, unless the loan was used to improve your main home. 

If you paid points or interest on your refinance in 2016, enter the expenses in the same section as your original lender. If you did not receive a 1098 for these expenses, enter as if you did receive a 1098. It will flow to the correct line on your schedule A. 

To navigate to the section:

  • In your open return, select My Account
  • Tools
  • Topic Search
  • Type '1098' in the box, then select GO

https://www.irs.gov/pub/irs-pdf/p936.pdf

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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