Deferred mortgage interest paid via refinance

[matt1235]

Hello:

I deferred 18 months of mortgage interest on a primary mortgage.  I then refinanced the mortgage in 2022 so all the deferred interest was paid in pull by the refinance.  Since mortgage interest is tax deductible when it is paid, am I able to deduct the deferred interest in its entirety for 2022 taxes?  If not, do I have to spread the deferred interest over the life of the new loan, since it is now part of the new loan?

I am uncertain if the old servicer will include the deferred interest on the 1098 for 2022, but if they do not I will request a correction to include the payments at the time of refinance.

Thank you for your help.

[Carl]

Here's how I understand it.

If the deferred interest is included on your 1098 or your refinance documents and was paid during 2022, you may deduct it. If the deferred interest was rolled in to the backside of your loan you cannot deduct it.

You won't know until you get the 1098.

[NCperson]

@matt1235   

here is my 'two cents' - I could be off base on this, so hope others weigh in and may have a different opinion.

that interest is not currently tax deductible.  the problem is you did not pay the deferred payment with CASH, you "paid' it by increasing the mortgage balance.  the tax system is a cash based system.