The National Directory of Certified Public Accountants

Ask A CPA - Can I Deduct...?

Unamortized Points - Mortgage Interest

The “unamortized” points from a refinanced home mortgage, when the mortgage loan that generated the points, is refinanced again or is paid off early with a new lender, or the property is sold, is another real-estate-related expense that you can deduct as an Itemized deduction on Schedule A, as mortgage interest. When you refinance a home mortgage, any points charged on the loan must be deducted, or amortized, over the life of the mortgage. When the mortgage is paid off early, the balance of the points may be deducted in full in the year the loan is paid off. Note that If you refinance with the same lender you must continue to amortize the points on the original loan, in addition to any points charged on the new loan.

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