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.