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Discussion Forum Index --> Tax Questions --> Points Paid
Cpathatsings (talk|edits) said:
| 14 February 2007
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| I have a client that paid points in 2006 on a house she has not moved into yet. Since she hasn't sold the house she lives in now and hasn't moved in the new house, I don't think the points paid in 2006 can all be deducted in 2006 even though the 1098 said points paid on purchase of principal residence. I actually think the 1098 is wrong. I feel the points have to be amortized over the life of the mortgage. Any opinions would be greatly appreciated.
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Lhhesscpa (talk|edits) said:
| 14 February 2007
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| The 1098 doesn't determine the tax treatment. You have to look at the rules for qualified residence interest to determine whether the points are deductible in the year of purchase or must be amortized over the life of the loan. -- Larry Hess, CPA, Albuquerque, NM - Talk to me
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Deback (talk|edits) said:
| February 14, 2007
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| Points paid when purchasing a home are deductible in the year paid. I don't think it matters that she hasn't moved in yet. I would deduct the points in 2006.
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Riley2 (talk|edits) said:
| 14 February 2007
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| The key question is whether this is a principal residence. If you feel that it is not a principal residence, the points should be amortized.
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