can i deduct a prepayment penalty i was charged on my income tax return? what do i need to prove it happened?

Question

i refinanced my home in 2006 and was charged a pre payment penalty . can i deduct it? i don't have any form 1098 showing it happened what do i need to prove it?

Answer 1

Mortgage prepayment penalty. If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.
http://www.irs.gov/publications/p936/ar02.html#d0e770
You should have gotten a statement from the mortgage co that was paid off, or it may show on your closing statement

If it meets the above qualification, this would be reported on the Schedule A Line 11 with the name address and TIN ( you could get that from a prior 1098) of the Mortgage co it was paid to.

You must be itemizing your deductions on Sch A rather than taking the Standard deduction for your filing status




http://www.irs.gov/publications/p936/index.html

Answer 2

If you know the correct amount just deduct it without the 1098. Perhaps you can also request documentation from the mortgage company for your files

Answer 3

Your federal earnings tax return has no longer something to do with sources taxes different than you may itemize sources taxes on Sch A of your tax return in case you itemize. This late interior the year you probable won't have adequate very own loan activity to make it helpful to itemize because of the fact the traditional married submitting joint deduction is over $ 10,000.00. you may discover out how lots your sources taxes are so which you would be able to save up the money to pay them on their due date. you may no longer document a tax return withhout your W-2; and you may ask him to check because of the fact the regulation demands that they be issued by potential of the thirty first of January. of direction you're coping with idiots and computers here so all bets are off; woulda-coulda-shoulda. additionally examine with the valuables tax branch to work out if all or any your sources taxes are exempted due on your significant different being interior the protection stress. some states decrease them or eliminate them for serving protection stress workers.

Answer 4

you can only deduct interest on a mortgage.