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posted May 31, 2019 11:32:57 PM

Tax Year Prior to 2020: I JUST POSTED A QUESTION ABOUT POINTS AND FEES ON A REFINANCE MORTGAGE. i FORGOT TO MENTION THAT THE 1098 RECEIVED HAS 0 IN BLOCK 6 BUT MY CLOSING STATEMENT SHOWS OVE14K

i JUST POSTED A QUESTION ABOUT POINTS AND FEES ON A REFINANCE MORTGAGE.  i FORGOT TO MENTION THAT THE 1098 RECEIVED HAS 0 IN BLOCK 6 BUT MY CLOSING STATEMENT SHOWS OVER 14K IN ORIGINATION, POINTS, PREPAID INTEREST, AND OTHER TAXES AND FEES

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Level 5
May 31, 2019 11:32:58 PM

The Form 1098 often doesn't show origination fees/points. You can still deduct the qualified points paid from your settlement statement. 

You can deduct any interest or real estate taxes on your Settlement Statement that are not already included on your Form 1098. Only pro-rated amounts can be deducted, not prepaid amounts held for escrow.

Also, you can deduct qualified points paid on a mortgage, but they have to be spread out over the term of the loan. The software will prompt you to select that.  (Points can also be called loan origination fees, maximum loan charges, discount points, or loan discount.)

Most other fees are not deductible, but can be added to the basis to reduce potential capital gains when you later sell the property.

What kinds of refinancing costs can I deduct? 

https://ttlc.intuit.com/replies/3300426

 

It goes in the same area as your regular mortgage interest. When you enter the new mortgage interest, the software will ask you questions about the new loan and you will be able to select that it was a refinance.

  • Federal Taxes tab (Personal in the Home and Business Version)
  • Deductions and Credits
  • Your Home
  • Mortgage Interest and Refinancing (select Add a Lender if you have already entered one)