Friday, February 5, 2010

Deduction of Interest Paid and Points paid at closing

I have been getting calls this week asking about whether points paid at closing, which are shown on the settlement statement at closing, are able to be deducted as interest paid on your long form.

YES!

Deduct your points paid with or with out a form 1098 from Primary Residential Mortgage or from the Lender you are making your payment to. Keep a copy of your settlement statements with your tax papers in case of an IRS audit. As always, I advise you to double check with your tax advisor for the final word on this.

If you are at a point you would like to give up on the idea of doing your own taxes, let me refer you to my tax advisor. Her name is Lorrie Rumpsa and can be reached at 801-621-8128 for an appointment to schedule your tax review. You will LOVE her!

Thanks for the calls and please let me know what other tax questions you have and I will research it for you!

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