How do I amortize "points" to line 8c (line 12 in Drake17 and prior) of the 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 line 8c (line 12 in Drake17 and prior) of Sch. 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.