OK, not having to file tax returns in the UK (at least when I left in 94) I've never done them, I used to pay a CPA and we continued doing that when we got married. But about 4 years ago my wife thought she could just as good a job using Turbo Tax and save the prep $$'s. Seems to have worked great so far.
But this year for the first time we've got a bit of a problem. We re-financed last year and also paid 1 point on interest. Now I'm convinced when I re-fied in the past I claimed all of the re-fi charges in one go, and I assume you do the same with the one point we prepaid. But my wife and Mother in Law both say the way they read it you have to write off those costs over the life of the loan. I think that's wrong. Any one care to shed some light on this?
Thanks guys.
My brother is a big-time CPA with a master's degree in taxes and 25 years experience, former CFO, etc...
Whenever I ask him a tax question, he says, "I don't know, I just use TurboTax".
Woody wrote:
"I don't know, I just use TurboTax".
But Turbotax Isn't providing the answer so far 
http://www.google.com/search?hl=en&client=firefox-a&hs=TXR&rls=org.mozilla%3Aen-US%3Aofficial&q=amortizing+refinance+points+taxes+&aq=f&aqi=&aql=&oq=&gs_rfai=
From the summaries google shows, it looks like on a refinance they get amortized over the life of the loan (or in a lump when you payoff that loan)
google said:
By paying a little more in upfront closing costs, you may save significant amounts of money on long-term interest. As an added bonus, the IRS lets you claim the points as a deduction. However, homeowners should know that points paid on purchases and points paid on a mortgage refinancing are treated differently
When you purchase your home, you'll jump for joy knowing that the points you'll pay are deductible in the tax-year in which you made the buy. For example, if you paid one point on the origination fee of your brand new $350,000 house, you'll have a hefty $3,500 tax deduction to write-off when April 15th comes around.
It's a different ballgame, however, when you refinance your mortgage. In the above case, if the same homeowner refinances his mortgage after two years, the deduction for the amount he paid in points will be amortized over the course of the loan. If he refinances and pays 2 points on a new $300,000 loan, his tax deduction of $6,000 under the refinancing scenario-(2 percent x $300,000)-would be amortized over 30 years (the term of the new loan). The math in this case ($6,000/30) results in a tax deduction of $200 per year for 30 years.
If you decide to refinance again, or if you sell the house, you can write-off the unclaimed portion of the deduction. In the above example, if the homeowner decides to sell his house after only two years after refinancing his mortgage, he can claim the remaining $5,600, since he had deducted only two years at $200 on his taxes.
davidjs wrote:
http://www.google.com/search?hl=en&client=firefox-a&hs=TXR&rls=org.mozilla%3Aen-US%3Aofficial&q=amortizing+refinance+points+taxes+&aq=f&aqi=&aql=&oq=&gs_rfai=
From the summaries google shows, it looks like on a refinance they get amortized over the life of the loan (or in a lump when you payoff that loan)
google said:
By paying a little more in upfront closing costs, you may save significant amounts of money on long-term interest. As an added bonus, the IRS lets you claim the points as a deduction. However, homeowners should know that points paid on purchases and points paid on a mortgage refinancing are treated differently
When you purchase your home, you'll jump for joy knowing that the points you'll pay are deductible in the tax-year in which you made the buy. For example, if you paid one point on the origination fee of your brand new $350,000 house, you'll have a hefty $3,500 tax deduction to write-off when April 15th comes around.
It's a different ballgame, however, when you refinance your mortgage. In the above case, if the same homeowner refinances his mortgage after two years, the deduction for the amount he paid in points will be amortized over the course of the loan. If he refinances and pays 2 points on a new $300,000 loan, his tax deduction of $6,000 under the refinancing scenario-(2 percent x $300,000)-would be amortized over 30 years (the term of the new loan). The math in this case ($6,000/30) results in a tax deduction of $200 per year for 30 years.
If you decide to refinance again, or if you sell the house, you can write-off the unclaimed portion of the deduction. In the above example, if the homeowner decides to sell his house after only two years after refinancing his mortgage, he can claim the remaining $5,600, since he had deducted only two years at $200 on his taxes.
That's great thanks. So it's confirmed that the point is over 30 years. But what about the rest of the cost? 30 years or one go?
Partially answering my own Q. From BoA
You Can Write Off Closing Costs
When you buy a home, many of your expenses are tax-deductible. For instance, you can typically deduct the real estate agent's commission, attorney's fees, surveys, title searches, and transfer taxes.
So I can write off a large part of the costs.
