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Mortgage interest part explains what you can deduct as home mortgage interest. It includes
how to report deductible interest on your tax return
POINTS :
Are certain charges paid by a borrower to obtain a home mortgage;
Termed as loan origination fees, loan discount, maximum loan charges or discount points;
Points paid on loan to purchase a home is fully deductible in the year of payment;
Points paid on refinance of loan are deductible over the life of the loan;
Points reported on 1098 flow to line 10 of Sch A & points not reported on 1098 flow to line 12
Subject to phase out rules;
Form 1098
ceeding $100,000; (Mortgages you took out after October 13, 1987,
In pro system:
We have to input mortgage interest paid in input form A-3 line 30 or 54 and deductible points
Refund of overpaid interest is considered it as other income and it is to considered in input fo
Box no.Description
1 Mortgage interest received from payer(s)/borrower(s)
2 Points paid on purchase of principal residence
3 Refund of overpaid interest
4 Mortgage insurance premiums
ness use of home
d in input form A-3 line 30 or 54 and deductible points to be entered on line 35.
ed it as other income and it is to considered in input form M-1.
Input Screen & Box Output
Form A-3, line 30 or 54 Schedule A, line 10
Form A-3, line 35 Schedule A, line 10
Less overpaid interest from Form A-3, line
Overpaid
30 or 54
interest will less from Schedule A, line 10
m Schedule A, line 10