Follow these steps to enter amortization of mortgage points on the Schedule A:
- Go to Screen 22, Depreciation.
- Select Schedule A from the left panel.
- Scroll down to the Federal Depreciation section.
- Select Schedule A (points) from the Form (Ctrl+T) dropdown menu.
- Enter the Date Placed in Service (Negative Date = Various).
- Enter the Cost or Basis.
- Select Straight Line (Method 91) from the Method (Ctrl+T) dropdown menu.
- Enter the Life or Class Life (recovery period automatic).
- Select 461=Sec. 461-Points from the Amortization Code Section (Ctrl+T) dropdown menu.
- Enter the remaining balance as Current depreciation/amortization (-1=none) [O] (if this is the final year).
To adjust the calculation of deductible points:
- Go to Screen 25, Itemized Deductions.
- Scroll down to the Interest section.
- Enter the adjustment in Points Not on Form 1098 [A] (Ctrl + E). Enter an increase as a positive number, and a decrease as a negative number.