Let The Income Tax Questions Begin -- Refinanced Home

[momtosam]

We refinanced our home this year. How do I report that on my income tax. Is it considered a sale and new purchase?

 

[Claire&TheBoys]

There's nothing additional you have to report, just make sure you account for all the interest you paid and property taxes.

 

[clh2]

Did you pay any points for your refinance? When you purchase your home, you can deduct them in the tax-year you purchased the house. In a refinance, since it is a prepaid interest, you can still deduct the points - HOWEVER...you would need to amoritize them over the length of the new mortgage.

 

[richmond282]

Did you pay any points for your refinance? When you purchase your home, you can deduct them in the tax-year you purchased the house. In a refinance, since it is a prepaid interest, you can still deduct the points - HOWEVER...you would need to amoritize them over the length of the new mortgage.

Not trying to hijack the thread, but we refi-ed and paid points and an origination fee. Or is that the same thing? I'm so confused. Our mortgage broker told us we could claim it on our taxes and we would get back about 1/3 of what we paid, but I haven't been able to figure out how to do this. Anybody know?

 

[tinatark]

If you *paid* the points at closing and you itemize your deductions, you can deduct them - if you rolled them into the loan, you have to amortize your deduction over the term of the loan.

Points are prepaid mortgage interest - they're included on your itemizing schedule.

 

[clh2]

Does this help to answer the question on amoratizing the points over hte loan? I tried to get an IRS-type answer, not just some generic info from the internet.

http://www.irs.gov/taxtopics/tc504.html

It glosses over the refinance statement in the paragraph after the bullets.

 

[seashoreCM]

Did you pay points on the previous loan? Did you spread those points out over the term of the loan instead of deduct the points up front back then?

If so you deduct all the remains of those points in the year you refi'ed.