Real Estate NewsDeduct Your Unused Points from Refinancing
The IRS rules changed a few years ago, and if you took advantage
of the lower rates offered earlier this year, you might need to
make sure you did not overlook a large deduction.
When you refinance, the IRS requires you to amortize the points
over the life of the loan. However, if you have refinanced a
second, third, etc., time, you need to recapture the unused portion
of the points that have not been amortized and deducted yet.
For you real estate and mortgage professionals, this is a perfect
item follow up with your clients about. Follow up after the
closing is a primary key to future business and referrals.
Home owners shouldn"t overlook this deduction.
As in all cases, this is not tax advice. You are instructed to
consult your tax advisor, CPA, or attorney for professional tax
advice. However, this is a deduction that is often overlooked
unless borrowers are aware of it and ask to see if it applies
to them. Because it is so easy to overlook, the members of the E.
Ching Enterprises" Mortgage Development Group Division thought
a handy reminder may be of use.
Tip brought to you by:
E. Ching Enterprises
MDG Group
Box 39
1441 Piikoi St., Suite 504
Honolulu, HI 96822