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I won't have much mortgage interest to deduct in the current year (i.e. 2007) because my mortgage loan won't begin until September. I might be better off taking a standard deduction for 2007. Can I defer the deduction of my mortgage points on my home purchase which I paid for in 2007 , to my 2008 tax return?

2007-07-07 14:09:47 · 5 answers · asked by S T 1 in Business & Finance Taxes United States

5 answers

No, you can not "defer" the deduction but you can choose to amortize the points over the life of the loan. It won't be much of a deduction each year but it is better than nothing.

If you refinance the mortgage or sell the home, the remaining points that you have not deducted in previous years may be deducted in the year of the refinance/sale.

2007-07-07 15:57:30 · answer #1 · answered by Wayne Z 7 · 1 0

Actually your points are amortized for deduction over the life of the loan. e.g. If you paid $3,000 in points and have a 30 year mortgage, you'd deduct $100.00 per year. The amount from the first year is lost to the standard deduction. I purchased my home Dec. 20, so I ran into the same problem.

2007-07-07 14:18:42 · answer #2 · answered by RopeResQ 2 · 0 1

An excellent source for information regarding any tax question is found at the IRS Publication 17 site. The exact answer for your question from the most recent edition is provided via the link. The other answers you have received may make it more understandable. However, P 17 is relatively easy to follow, if one has the intellect you have already shown.

2007-07-07 14:22:25 · answer #3 · answered by healthsys2 3 · 0 0

No, you can't take them in 2008 in total, although you can spread them out over the years in the life of the loan.

2007-07-07 14:21:04 · answer #4 · answered by Judy 7 · 2 0

the general answer is no....has to be in current year---however; speak with your accountant...which now that you are a homeowner..you really need..since you will have homowners insurance, property taxes, interst deduct etc etc...lots more to do.
good luck

2007-07-07 14:18:42 · answer #5 · answered by Blue October 6 · 0 1

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