Can we claim a deduction for points paid to refinance our home?

March 5, 2003

Subject:  refinancing home points
From:  Helene
Date:  Tue, 28 Jan 2003

Hello-

My husband said we can claim our points we paid when refinancing our home in 2002. Do we need a special form, or do we just put it in a certain place on our return?

Thank you

Answer

Date:  5 Feb 2003

Hello Helene,

Points can only be deducted for the purchase of a principal residence. Points for refinancing a loan on a residence must be amortized over the term of the loan. If the loan is later refinanced with a different lender, the unamortized balance of the points for the previous loan can be deducted at that time.

Points that can't be traced to Form 1098 are reported at line 12 on Schedule A.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.



Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+
Our Blog
© 2018

Subscribe to
Michael Gray, CPA's
Real Estate Tax Letter!

We respect your email privacy

We respect your email privacy!