I purchased a home in 2006 and paid 2.125 points for the loan. 1.125 points to the lender which appear on 1098 from the lender. 1 point I paid to the broker and it appears as Mortgage Broker Loan Origination fee on the settlement statement and not on 1098. My question is "are all the
2.125 points deductible this year". If yes where do I enter the point I paid to the broker. Thanks
snipped-for-privacy@gmail.com posted:
From your brief description of the points you were charged, it seems highly likely that you can deduct the total paid as a 2006 expense, on Schedule A. The best explanation of whether points are deductible in the year paid, appears in Pub 17, starting on page 143. A very complete decision tree is shown in Figure 23-B, on page 145. Between the two, you should be easily able to verify whether your points are deductible. If verified, the points report on Form 1098 should be included with the total mortgage interest paid on line 10, Schedule A, as noted. Other points paid are allocated to line 12, with a note to see page A-6 for special rules. Bill
Schedule A, line 12.
-- ============================================================Ian Pilcher snipped-for-privacy@gmail.com ============================================================
Thanks for the information.
The 1 point I paid to the broker appears on the HUD Settlement statement on Line 812 as "Mortagage Broker Loan Origination fee.."
I am using Turbo Tax online to fill my taxes and it does not allow me to enter these points separately..
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