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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
    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
    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.
    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

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