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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

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

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