Points on Personal Residence

[pmedders]

Feeling a little brain-dead and just wanted to confirm:

Client moved due to his job and company paid his closing costs and points of new mortgage. Company added relocation income to box 1 of W-2.

Points are still deductible by client being he was taxed on this income, correct??

Client can deduct his mileage to new home and expenses incurred due to specific move being company added to box 1 of W-2, and did not exclude moving expenses from income and put in box 12, correct?

Thanks for your clarification.

[Mark Goldberg]

points

If the points were added to the client's income then I would deduct them on Scheudle A.
As for the mileage, this should not have been added to wages. The direct moving costs that were reimbursed should show up with a code of P I think and not be added to wages. Are you sure they added them to wages?

[Ken]

Points

Yes the points are deductable on schedule A and if the moving expenses are added to his income on w-2 (which I have seen done before) you can take a moving expense deduction.

[stern100]

Some companies give a seperate w2 with moving exp only in box 1 & fed w/h in box 2.
No s/s or med wage or w/h.
I'm assuming this is a grossed up figure to cover the moving exp. and fed w/h, in which case, no moving exp would be deductable.
any thoughts?