Itemizing Mortgage Interest and Points Not Reported on a 1098

Article ID: 59183  

Question
Itemizing Mortgage Interest and Points Not Reported on a 1098

Answer

Points and Interest Not Reported on a 1098

If you did not receive a Form 1098 from the recepient, you will need to report your deductible interest in this section.

If you bought your 1098 home from the recepient, be sure to show that recepient's name, identifying no., and address. If the recepient is an individual, the identifing no. is their social security number (SSN). Otherwise, it is their employer identification number. If you do not show the required information about the recepient or let the recepient know your SSN, you may have to pay a $50 penalty.

If you had at least one other person (other than your spouse if filing jointly) were liable for and paid interest on the mortgage, and the other person received the Form 1098, you will need to attach a statement to your return showing the name and address of that person.

Points Not reported on a 1098 

Points are shown on your settlement statement. Points you paid to borrow money are generally deductible over the life of the loan. See Publication 936 to figure the amount you can deduct. Points paid for other purposes, such as lender's services, are not deductible.

Refinancing. Generally, you must deduct points you paid to refinance a mortgage over the life of the loan. This is true even if the new mortgage is secured by your main home.

If you used part of the proceeds to improve your main home, you may be able to deduct the part of the points related to the improvement in the year paid. See Pub. 936 for details.

If you paid off a mortgage early, deduct any remaining points in the year you paid off the mortgage.


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Views: 1865 Created on: Jun 15, 2013