When do deduct point?

Forum|Forum|1 year ago
January 22, 2025
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I closed on my home Jun of 2023, and I paid points. Mid 2024 my loan was sold and I have two 1090 forms. Do I input the points paid on my 2024 taxes, or is that only the tax year my home was purchased.

MindyB

It depends. Typically, you can deduct the points in full the year you pay them. Verify that you deducted them on your 2023 tax return. If you did so, there is nothing additional to deduct in 2024. If you are not sure if you meet the requirements to deduct the points in full, see this article: How to Deduct Mortgage Points on Your Tax Return

Since you have 2 Form 1098s this year, input the information from both separately. Enter the 1098 from the original lender first and choose No when asked "Is this 1098 the most recent for your loan?" Then enter the 1098 for the new lender and choose Yes to the question "Is this 1098 the most recent for your loan?" Turbo Tax will combine the information from the 1098s.

dcp4200Author

So in regards to points paid, I paid points the year I purchased my new home (2023), which is reflected on my 2023 1098. I have the points amortized over the life of the loan. My 2024 1098s (1 from original lender, 2nd from lender that took over), from the original lender does not indicate points paid. Since I amortized it over the life of the loan, do I need to input points paid on the original 1098 from 2023? Thanks