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10460: Amortizing Mortgage Points


1040 Individual

How do I amortize "points" to carry to Schedule A from the 4562?

Enter screen 4562 as follows to amortize points.

  • In the For drop list, select A.
  • To direct the amortization to Schedule A, either
    • For Method, select PTS – Amortization of Points for Schedule A and enter any appropriate Description.
    • or for Description, enter a description that begins with "points", such as "points home purchase" and for Method select AMT – Amortization (or PTS).
  • Enter Date Acquired and Cost (the amount of points paid).
  • Enter Life of the loan. Points paid only to borrow money are generally deductible over the life of the loan.

The allowed deduction is carried to Schedule A, line: 

  • 8c starting in Drake18
  • 12 in Drake17 and prior
See Tax Topic 504 and Schedule A Instructions for more information about home mortgage points.

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