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Itemized Deductions Schedule-A


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Old 04-09-2014, 04:57 PM
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Can I deduct all the refi points if I did not amortize each year?

In 2009 I did a refi and paid $4100 in points. I knew I could not deduct them all that year, but I also did not amortize them each year since as suggested. I sold the home and paid off the mortgage in 2013 so want to take all the points as a deduction for 2913. My new accountant says I cannot do that, and can only deduct the remaining points as if I had been amortizing them and taking yearly deductions. I think that is wrong from every viewpoint and I should be able to deduct the remaining amount which happens to be the entire amount, and he says I lost those amortized point deductions since did not take them yearly. Is there any clear language that says I have to have been taking yearly amortized deductions and if I did not I lost them? Seems to the IRS benefit if I did not take the deductions yearly and take the whole thing now. Thanks, Dave



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Old 04-10-2014, 05:15 AM
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Originally Posted by CodeSlinger View Post
In 2009 I did a refi and paid $4100 in points. I knew I could not deduct them all that year, but I also did not amortize them each year since as suggested. I sold the home and paid off the mortgage in 2013 so want to take all the points as a deduction for 2913. My new accountant says I cannot do that, and can only deduct the remaining points as if I had been amortizing them and taking yearly deductions. I think that is wrong from every viewpoint and I should be able to deduct the remaining amount which happens to be the entire amount, and he says I lost those amortized point deductions since did not take them yearly. Is there any clear language that says I have to have been taking yearly amortized deductions and if I did not I lost them? Seems to the IRS benefit if I did not take the deductions yearly and take the whole thing now. Thanks, Dave
points paid on purchases and points paid on a mortgage refinancing are treated differently;
, when you refinance your mortgage, if the same homeowner refinances his mortgage after two years, the deduction for the amount he paid in points will be amortized over the course of the loan. If he refinances and pays 2 points on a new $300k loan, his tax deduction of $6,000 under the refinancing scenario-(2 percent x $300k)-would be amortized over 30 years (the term of the new loan). The math in this case ($6k/30) results in a tax deduction of $200 per year for 30 years.
IRS stipulation won't make you wait 30 years to claim the entire deduction. as you sell the house, you can write-off the unclaimed portion of the deduction. In the above example, if the homeowner decides to sell his house after only two years after refinancing his mortgage, he can claim the remaining $5.6k, since he had deducted only two years at $200 on his taxes.



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Old 04-10-2014, 09:03 AM
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Thanks but that was not the question. The question was if I could deduct the entire amount in 2013 as the unclaimed deduction if I did NOT take the yearly deductions.



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Old 04-10-2014, 09:21 AM
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Thanks but that was not the question. The question was if I could deduct the entire amount in 2013 as the unclaimed deduction if I did NOT take the yearly deductions.
correct;since you previously refinanced themortgage, you can claim any unclaimed points from the prior refinancing as an itemized deduction on sch A of 1040 aslongas you itemize your deductions. If you remained with the same bank, then the old points are combined with the new points and written off over the life of the new loan.



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Old 04-10-2014, 09:46 AM
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Weird. The thread did not keep my previous reply, and still says I have a private message even though there are none there as I deleted them.

Anyway, thanks for the reply, but that was not my question. My question was can I take the entire amount as a deduction in 2013 since I did NOT take the yearly amortized deductions before paying the loan off. Thanks.



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Old 04-10-2014, 09:49 AM
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Now they are showing up when I go to advanced. Sorry for the double posting.

My new accountant thinks otherwise though I have been doing this for my entire life on refis. Is there any clarification on this anywhere besides 936 that I get to take all the unclaimed deductions not having taken the amortized deductions between paying the refi points and the payoff? THx.



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