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Old 02-26-2012, 10:56 PM
 
15 posts, read 16,809 times
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Default Tax Question...Line 801 listed as "Points %" but

Tax Question...Line 801 listed as "Points %" but some "experts" say it's not tax deductible while others say it is. What is the REAL story?

Background - Multiple refi's over the years and NEVER deducted anything from line 801 in any prior filling. We refi'd in 2010 for 20 years and line 801 shows $1,200. Nothing on line 802 and not concerned about paying it over the years or not because...

We recently refi'd again @ a point and a half lower for 15 years so my question is...

Since the "term of that loan" concluded when we refinanced this new loan, "Can I claim all or part of that $1,200's on my 2011 taxes"?

Last edited by ndabunka; 02-26-2012 at 11:51 PM..

 
Old 02-27-2012, 05:50 AM
 
Location: Wake Forest, NC
834 posts, read 2,161,813 times
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You "paid" the monies in 2010 then you would have to amend that years return, not claim it in 2011.

Line 801 is the broker/lender fee
Line 802 is how much of that fee the lender/investor paid
Line 803 is what you paid

Line 803 is the only one that counts for tax purposes. I believe you prorate this figure over the amortization term.
 
Old 02-27-2012, 12:06 PM
 
15 posts, read 16,809 times
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Quote:
Originally Posted by dad2jules View Post
You "paid" the monies in 2010 then you would have to amend that years return, not claim it in 2011.

Line 801 is the broker/lender fee
Line 802 is how much of that fee the lender/investor paid
Line 803 is what you paid

Line 803 is the only one that counts for tax purposes. I believe you prorate this figure over the amortization term.
Wouldn't I have to "claim it over the term of the contract"? If that contract is simply these two years, can I simply split it in half and claim half in an amended 2010 1040 and the other half on my 2011 report? If I don't want to "bother" with the 2010 ammended return, can I still claim the other 50% on the 2011 taxes?
 
Old 02-27-2012, 08:46 PM
 
15 posts, read 16,809 times
Reputation: 18
Quote:
Originally Posted by ndabunka View Post
Wouldn't I have to "claim it over the term of the contract"? If that contract is simply these two years, can I simply split it in half and claim half in an amended 2010 1040 and the other half on my 2011 report? If I don't want to "bother" with the 2010 ammended return, can I still claim the other 50% on the 2011 taxes?
Actually, thinking more about it, I would have only have taken 1/20th of the amount in that first year because the "planned" duration would have been 20 years (in that case). So I doubt if it would "be worth it" to amend a return for a $60 figure. However, learning that the second year would be the final year would also mean that I would then take the balance in that second year 19/20th of the $1,200 would be $1,140 in that one year so that may well be worth filing it that way especially since I have not yet filed for 2011
 
Old 02-28-2012, 05:48 AM
 
Location: Wake Forest, NC
834 posts, read 2,161,813 times
Reputation: 612
This is best answered by a tax professional. I just wanted to point out that you did not pay lines 801 and 802 even though they are are on your HUD. Line 803 is the one to focus on.
 
Old 02-28-2012, 03:01 PM
 
15 posts, read 16,809 times
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Quote:
Originally Posted by dad2jules View Post
This is best answered by a tax professional. I just wanted to point out that you did not pay lines 801 and 802 even though they are are on your HUD. Line 803 is the one to focus on.
I appreciate your guidance but if line 801 is $1,200 and line 802 is zip, nada, nothing, empty, blank, etc then line 803 equals line 801, right?

So, the original question remains. It is odd that the 1098 from that year does not show any of these details. I ONLY shows the investment interest paid over any particular year. Is it an error for a lender not to include the contents of line 803 in box 1 of their 1098? Of course, a tax attorney may be able to clear up such details but being so minor an amount, I don't think it warrants the $200/hour most of them want so that is why I floated the inquiry in this forum.
 
Old 02-28-2012, 08:36 PM
 
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Admin - Please close this thread.
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