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dcp4200
Returning Member

When do deduct point?

I closed on my home Jun of 2023, and I paid points. Mid 2024 my loan was sold and I have two 1090 forms. Do I input the points paid on my 2024 taxes, or is that only the tax year my home was purchased. 

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4 Replies
MindyB
Employee Tax Expert

When do deduct point?

It depends. Typically, you can deduct the points in full the year you pay them.  Verify that you deducted them on your 2023 tax return.  If you did so, there is nothing additional to deduct in 2024. If you are not sure if you meet the requirements to deduct the points in full, see this article: How to Deduct Mortgage Points on Your Tax Return

 

Since you have 2 Form 1098s this year, input the information from both separately. Enter the 1098 from the original lender first and choose No when asked "Is this 1098 the most recent for your loan?" Then enter the 1098 for the new lender and choose Yes to the question "Is this 1098 the most recent for your loan?"  Turbo Tax will combine the information from the 1098s.

dcp4200
Returning Member

When do deduct point?

So in regards to points paid, I paid points the year I purchased my new home (2023), which is reflected on my 2023 1098. I have the points amortized over the life of the loan. My 2024 1098s (1 from original lender, 2nd from lender that took over), from the original lender does not indicate points paid. Since I amortized it over the life of the loan, do I need to input points paid on the original 1098 from 2023?  Thanks

KrisD15
Employee Tax Expert

When do deduct point?

No, that should not be necessary.

The interest shown on the 2024 Form 1098 from Lender Two should report all the interest you paid, including the amortized points.

 

 

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dcp4200
Returning Member

When do deduct point?

Thanks!

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