Are Mortgage Discount Points Tax Deductible. Discount points are fully deductible no matter which type of property youre refinancing. For example if you paid 5000 in points on a 30-year fixed.
Discount points are fully deductible no matter which type of property youre refinancing. You just have to itemize your deductions and claim the points on Form 1040. Under Section 163 of the IRS code and spelled out in IRS Publication 936 2015 loan discount points paid in connection with a mortgage loan secured by real estate are tax deductible as long as they are paid to secure the interest rate and are not for a specific service performed in connection with a mortgage loan such as an appraisal fees.
Points paid as part of a mortgage refinance usually must be deducted over the life of the loan.
Some are mandatory such as loan-origination fees that cover the lenders costs. To write off discount points or any other. Discount points can be tax-deductible depending on which deductions you claim on your federal income taxes. The term points is used to describe certain charges paid to obtain a home mortgage.
