Taxpayers purchased primary residence in 2007, paid 1% mortgage points on a VA loan, were issued a 20% Mortgage Credit Certificate. Points would qualify for full deduction in 2007 but taxpayers don't have sufficient expenses to itemize. Since IRS defines points as prepaid interest, can the 20% credit be taken on the points amount shown in item 2 of 1098? I've found differing opinions on this on other forums, but I can't find specific guidance in IRS pubs and tax topics.
- posted
16 years ago