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April 11, 2025
Question

One Time Close Construction Loan

  • April 11, 2025
  • 1 reply
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I closed on a one-time close construction loan for a new personal residence in late November 2024 paying $8000 in points at closing.  There were no other draws or interest in 2024.  I understand that the $8000 is fully deductible in 2024 but don't know how to get TurboTax to recognize that (it significantly limits it).  Any suggestions?

    1 reply

    AmyC
    Employee
    April 15, 2025

    Let's get the  credit you deserve. See Deduction Allowed in Year Paid to determine if you qualify.  Generally points aren't fully deducted.

    To deduct 100% of your 2024 points on this tax return, you must check the box "This is a new loan on which I paid points (origination fees) in 2024" and the box "I bought or improved my main home with this loan in 2024."
     

    Reference: About Publication 936, Home Mortgage Interest Deduction 

     

     

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