Am I still able to deduct past interest for Mortgage Discount points?

I purchased a home in 11/2003. It was financed using an 80%/10%/10%
(1st loan/2nd loan/down payment) format.
The first loan was a conventional 30-year fixed. The second was a 15-
year balloon loan. Both were provided by the same lender. The first
payment was not due until 1/1/2004.The loans were resold
to separate lenders on March 10, 2004 (10% loan) and April 1, 2004
(80% loan).
Here at links to some images of my HUD-1:
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Looking at my HUD-1 (page 1 lines 207, 208) it appears that I was
charged a 1% lender discount credit for each of the loans. I take that
to mean I paid points. It was probably explained to me
5 years ago, but I don't remember.
There was also a 1% origination fee on each of the loans (page 2 lines
801, 805), but that seems to be the typical origination fee, and not a
code word for points.
The 1% discount credit for each of the loans seems to have been rolled
into the amount that I borrowed over the entire life of the loans. I
recently learned about discount points and that
they are normally tax deductible either in full in the same year of
the purchase, or over the life of the loan(s).
I just refinanced my home in Feb of this year. I would like to try to
get back as much as possible for the interest I paid on the 1% point.
I seem to meet all of the requirements for the
both the Deduction Allowed Ratably and Deduction Allowed in Year Paid
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, p. 5).
It also looks like I only had up to 3 years to file a 1040x
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to claim the fullamount in tax year 2003.
1) Is that correct, or is there still a way for me to claim the full
2) If not, would I need to file separate addendums for past tax years
to get a 12 month deduction for the 2005, 2006, 2007 and 2008 tax
years? Again, based on the 3 year rule, I may be out of
luck for amending tax year 2004.
3) It would seem that I would still be eligible to claim all of the
(remaining) points in tax year 2009
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,,id9734,00.html), is that correct? That seems like the mostpainless way to recover all/most of the money.
Looking at my 1098s from 2003, I see that Box 2 is empty. Box 2 has
been empty on every subsequent 1098 including those provided by the
original lender and the new lenders.
4) Is that cause for concern? Is my copy of the HUD-1 sufficient proof
that I paid points on the loans?
Reply to
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Points financed by the loan itself must be taken over the life of the loan. Points remaining when the loan was refinanced are taken in the year of refinance (2009). Therefore, you have nothing to amend for.
To have been allowed a deduction for the points in full in 2003, you must have paid them (into the escrow account) from funds NOT part of the loan proceeds. You didn't do that.
1/30th each year for the first mortgage, and 1/15th for the second.
Only for 25/30ths and 10/15ths respectively.
Generally, yes.
Reply to
D. Stussy
Thanks for the response. I have a few additional questions. Please see below.
Based on what you said, it seems my only option is collecting over the life of the loan.
It sounds like I do have the option of filing a 1040x for each of those years. Is that correct? Am I right about the 3 year limitation?
Yes to the first or second question? Sorry, I should have split those up.
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