Mortgage-Related Income Tax Deductions

don't miss out on these tax deductions!

If you made a home purchase in the last year, odds are you paid some little bit of something in discount points. Or maybe you weren’t confident rates would drop or didn’t want to worry about refinancing anytime soon, so you paid more.

Discount points and prepaid interest are both tax-deductible items that will NOT show up on your mortgage interest statement. Only interest paid monthly to your lender shows up on that tax statement. But discount points are basically prepaid interest and qualify as a tax write-off!

Also, property taxes are a deduction, so be sure to also include any pro-rated property taxes you paid at closing. If, for example, you closed your loan on November 15th, you would’ve paid a month and a half of 2023 property taxes into your escrow account. This is also tax-deductible.

Simply provide your tax professional with a copy of your final closing disclosure along with the 1098 from your lender, and they can apply all your tax-deductible items!

Tammy Metzger

Residential Mortgage Loan Originator. Dog Mom. Knowledge Seeker. Voracious Reader. Solo. Outdoors enthusiast. Genre Film Lover.

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