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Mortgage Points, Interest, Depreciation

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Junior Member
What is the name of your state?What is the name of your state?NC
Hopefully my questions will make sense..lol
We sold our first house, which we used once for a rental home, this year. When we were using it for a rental property the tax preparer recommended depreciation. We moved back into the property and lived there for 2 out of 5 yrs. We recently sold this house and bought another.
I received a 1098 (for the new house) showing that we paid for mortgage points...first time I heard of this, I didn't realize that we had. Are the points tax deductible and do they help with the refund? We have been filing the interest from the mortgages for the past years but first timer on the points.
Basically I am wondering if all of this will help my refund. I guess what I really want to know is should I bring a box of tissues to the tax preparer :eek:


Senior Member
Points are effectively interest, and are deductible along with mortgage interest on Schedule A.

You will have to recapture the depreciation as ordinary income on your tax return.

Bring your preparer the settlement statement for the house sale, and also information about what you paid for the house when purchased, and any improvements.

If this is not the preparer who did the depreciation, you will need to bring that information also.


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