I have a client who refinanced his house. The prior loan still had an unamortized point balance from the original mortgage.
I've been tracking the original mortgage points as a Schedule A, Amortization category item.
Been through the form/page many times and I cannot see how I can close this out to trigger the deduction of the full unused balance on the client's Schedule A.
If you can point me in the right direction, I would appreciate it.
Solved! Go to Solution.
@Accountant-Man Lacerte sets this up as a depreciation item. If it is properly tied to Schedule A points, then my answer was not totally correct. The only entry needed to claim the full balance is to enter a date of sale and the program will take cost - accum amort = remaining balance and take that deduction.
Lacerte is WAY DIFFERENT in many of it's approach to things. If you want to add some excitement and frustration to your life you can try Proconnect Tax for free online. You really should just to see how very different the approach is.
To clarify further, the loan amortization on the original loan (which has now been replaced by a refinancing) was set up in Screen 22 - Depreciation. The item was coded as "Form 8" and "Class 8" - both references to Amortization.
Under Asset Information, it was coded as "Form (Crtl+T) - Schedule A (points)".
There is no place, at least that I can see, where one enters a date of sale (i.e. - refinancing).
I have tried multiple other paths...no success.
I'm about ready to just hard plug it in, but am hoping that someone can show me the correct way to code this.
Thank you to all for your feedback. Much appreciated.