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Subject Author Date
Deducting Points udayr21 03-03-2007
Posted by udayr21 on March 3, 2007, 4:29 am
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 I purchased a home in 2006 and paid 2.125 points for the
loan. 1.125 points to the lender which appear on 1098 from
the lender. 1 point I paid to the broker and it appears as
Mortgage Broker Loan Origination fee on the settlement
statement and not on 1098. My question is "are all the
2.125 points deductible this year". If yes where do I enter
the point I paid to the broker.

Thanks

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Posted by Ian Pilcher on March 4, 2007, 8:50 pm
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 udayr21@gmail.com wrote:

> I purchased a home in 2006 and paid 2.125 points for the
> loan. 1.125 points to the lender which appear on 1098 from
> the lender. 1 point I paid to the broker and it appears as
> Mortgage Broker Loan Origination fee on the settlement
> statement and not on 1098. My question is "are all the
> 2.125 points deductible this year". If yes where do I enter
> the point I paid to the broker.

Schedule A, line 12.

--
=============================================================
Ian Pilcher arequipeno@gmail.com
=============================================================

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Bill on March 4, 2007, 8:50 pm
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udayr21@gmail.com posted:

> I purchased a home in 2006 and paid 2.125
> points for the loan. 1.125 points to the lender
> which appear on 1098 from the lender. 1 point
> I paid to the broker and it appears as
> Mortgage Broker Loan Origination fee on the
> settlement statement and not on 1098. My
> question is "are all the 2.125 points deductible
> this year". If yes where do I enter the point I
> paid to the broker.

From your brief description of the points you were charged,
it seems highly likely that you can deduct the total paid as
a 2006 expense, on Schedule A.

The best explanation of whether points are deductible in the
year paid, appears in Pub 17, starting on page 143. A very
complete decision tree is shown in Figure 23-B, on page 145.
Between the two, you should be easily able to verify
whether your points are deductible.

If verified, the points report on Form 1098 should be
included with the total mortgage interest paid on line 10,
Schedule A, as noted. Other points paid are allocated to
line 12, with a note to see page A-6 for special rules.

Bill

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by udayr21 on March 6, 2007, 5:25 am
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an_ordinary_guy_...@hotmail.com (Bill) wrote:
> uday...@gmail.com posted:

>> I purchased a home in 2006 and paid 2.125
>> points for the loan. 1.125 points to the lender
>> which appear on 1098 from the lender. 1 point
>> I paid to the broker and it appears as
>> Mortgage Broker Loan Origination fee on the
>> settlement statement and not on 1098. My
>> question is "are all the 2.125 points deductible
>> this year". If yes where do I enter the point I
>> paid to the broker.

> From your brief description of the points you were charged,
> it seems highly likely that you can deduct the total paid as
> a 2006 expense, on Schedule A.
>
> The best explanation of whether points are deductible in the
> year paid, appears in Pub 17, starting on page 143. A very
> complete decision tree is shown in Figure 23-B, on page 145.
> Between the two, you should be easily able to verify
> whether your points are deductible.
>
> If verified, the points report on Form 1098 should be
> included with the total mortgage interest paid on line 10,
> Schedule A, as noted. Other points paid are allocated to
> line 12, with a note to see page A-6 for special rules.

Thanks for the information.

The 1 point I paid to the broker appears on the HUD
Settlement statement on Line 812 as
"Mortagage Broker Loan Origination fee.."

I am using Turbo Tax online to fill my taxes and it does not
allow me to enter these points separately..

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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