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i refinanced my home in 2006 and was charged a pre payment penalty . can i deduct it? i don’t have any form 1098 showing it happened what do i need to prove it?

3 Thoughts on can i deduct a prepayment penalty i was charged on my income tax return? what do i need to prove it happened?
  1. Reply
    curmudgeon
    November 19, 2012 at 4:29 pm

    you can only deduct interest on a mortgage.

  2. Reply
    the Boss
    November 19, 2012 at 4:29 pm

    If you know the correct amount just deduct it without the 1098. Perhaps you can also request documentation from the mortgage company for your files

  3. Reply
    Rob
    November 19, 2012 at 4:58 pm

    Mortgage prepayment penalty. If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty is not for a specific service performed or cost incurred in connection with your mortgage loan.
    http://www.irs.gov/publications/p936/ar02.html#d0e770
    You should have gotten a statement from the mortgage co that was paid off, or it may show on your closing statement

    If it meets the above qualification, this would be reported on the Schedule A Line 11 with the name address and TIN ( you could get that from a prior 1098) of the Mortgage co it was paid to.

    You must be itemizing your deductions on Sch A rather than taking the Standard deduction for your filing status

    http://www.irs.gov/publications/p936/index.html

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