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April 11, 2025
Question

One Time Close Construction Loan

  • April 11, 2025
  • 1 reply
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I closed on a one-time close construction loan for a new personal residence in late November 2024 paying $8000 in points at closing.  There were no other draws or interest in 2024.  I understand that the $8000 is fully deductible in 2024 but don't know how to get TurboTax to recognize that (it significantly limits it).  Any suggestions?

    1 reply

    AmyC
    April 15, 2025

    Let's get the  credit you deserve. See Deduction Allowed in Year Paid to determine if you qualify.  Generally points aren't fully deducted.

    To deduct 100% of your 2024 points on this tax return, you must check the box "This is a new loan on which I paid points (origination fees) in 2024" and the box "I bought or improved my main home with this loan in 2024."
     

    Reference: About Publication 936, Home Mortgage Interest Deduction 

     

     

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