Mortgage Point deduction

[atkinsjam]

Good evening. I refinanced my mortgage, resulting in all remaining points (previously spread out) being paid off by the new loan.

My question is about timing. The new loan closed and dispersed at the very end of December 2020. However, I didn't see the old loan get physically paid off until the very beginning of January 2021. That being said, I deducted the interest and taxes shown on the 2020 1098s, but I did not deduct the remaining points on my 2020 return as the old mortage account did not show as "paid off" until January 2021. So, can I now deduct those remaining points on my 2021 return. I just did not want to deduct the points until I knew they were actually paid. Also, would I simply do this by entering a separate 1098 in TT, only reporting those points?

Thank in advance for the help!

[Carl]

What kind of property are you dealing with here? Primary Residence? (SCH A itemized deduction) Rental property? (SCH E expense/deduction). Other business property? (SCH C or coporate return deduction)

[atkinsjam]

Hello. This is my primary residence (Sched A itemized deductions)

[Carl]

For a primary residence, points are fully deductible in the tax year you close on the loan and pay those points.

They're deductible as a SCH A itemized deduction. Therefore, if the total of all your itemized deductions does not exceed your standard deduction, it will make no difference to your tax liability.