Are Mortgage Points Tax Deductible? Have Real Estate Questions? Amber Castonguay 920.988.0048
By Amber Castonguay, Servicing: Waukesha, Jefferson, Dodge County WI
(eXp Realty)
When you took out a mortgage to buy your home, did you pay points? You may be able to deduct that prepaid interest on your federal tax return — but only if you meet a long list of rules. If you determine that your purchase mortgage points are deductible, you'll report them on Schedule A of Form 1040. Image: Liz Foreman for HouseLogic The points you paid when you signed a mortgage to buy your home may help cut your federal tax bill. With points, sometimes called loan origination points or discount points, you make an upfront payment to get a particular rate from the lender. Since mortgage interest is deductible, your points may be, too. If you itemize your deductions on Schedule A of IRS Form 1040, you may be able to deduct all your points in the year you pay them.Some high...
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