Can I deduct points when...

Anonymous · ‎02-23-2009

the seller pays for them? I will have about 10k in sellers concessions and i'm trying to adjust my W4 for next years tax season. Can someone clarify? Thanks

Anonymous · ‎02-23-2009

bump

Anonymous · ‎02-23-2009

I don't believe you can deduct for something the seller is paying for. I could be wrong, but I ampretty sure you can not.

Anonymous · ‎02-24-2009

Double check on the IRS web-site to be sure, but I just looked at this not long ago myself and believe that it doesn't matter who paid the point, as long as it is on the 1098 or HUD-1 you can deduct. The best course of action would be to contact a CPA to be sure though.

I think IRS publication 530 has what you are looking for.

Message Edited by JR2475 on 02-24-2009 07:18 AM

Anonymous · ‎02-24-2009

To add on to this. As I understand it, the seller can pay the point, but it must be your principal residence and you also must bring to the table in closing costs/down payment, etc. just as much as the the point costs. So basically you can deduct it, so long as you have invested as much into the purchase yourself. I was just reading this last night, if I can find a link I'll come back and post it.

Anonymous · ‎02-24-2009

Thanks for the responses. I took some more time researching the question last night and came up with similar conclusions. Just as long as it reflects on the 1098 form and you can meet the few requirements, there shouldnt be a problem deducting them.