Points Paid on Refianced Mortgage Reported on 1098

[Yardley CPA]

Client refinanced mortgage and paid points. I realize the points are not deductible in full on this years return and should be spread out over the life of the loand (which is 15 years). However, is there a spot on ATX's Schedule A to indicate that points were reflected on 1098 and for the program to calculate the amount that can be taken this year and then in subsequent years? I know that Line 12 has that functionality, but the points WERE reported on a 1098.

[JohnH]

You still use line 12 for amortizable points, even if they were reported on a 1098. I think it's worded that way to give you a place to deduct points in full when they're on the HUD-1 but not on a 1098.

Using line 12 also triggers the error trapping that reminds you to deduct the points in future years.

Nice feature, BTW.

[Yardley CPA]

Thank you.

[Margaret CPA in OH]

I have used line 12 for reported points, too. I think the idea is to show amortized points that are deductible whether or not reported. This distinguishes fully deductible points, too.