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March 31, 2022
Question

If my mortgage was sold by the lender to another lender, can I the deduct points in full or do I still need to spread these deductions out over the life of the loan?

  • March 31, 2022
  • 2 replies
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2 replies

Carl11_2
Employee
March 31, 2022

If this mortgage was for your primary residence, then the points were fully deductible in the tax year you obtained the mortgage.

If this mortgage was for rental property or other business property, the points are amortized and deducted over the life of the loan. The fact the lender may have sold your mortgage to another has no bearing on this. You're still required to deduct your points over the life of the loan. Nothing changes for you in that aspect.

 

Employee
March 31, 2022

Selling the loan is not the same as paying off the old loan and making a new loan.