Client's 1098 has an amt in box 2 pts pd. Client also has a letter from the same lender who issued 1098 that his orgination fees are this amt which happens to be 3 times higher then box 2. All of this is on the same mortgage to buy his current home. I dont believe I have ever came across one of these. Now add this. The clients first home was converted into a rental April 2011 so this mortgage is on a 2nd home but is it really a 2nd home if the first one is a rental? TTB 4-12 top left #7) The loan is used to buy or build the taxpayer’s main home (not a second home).
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Houses everywhere
Sounds like a mess.Originally posted by AZ-Tax View Post
If there is no subterfuge going on, it is likely the lender sees things "differently" for rental property versus primary/secondary residence. In addition to a "new" loan there could well have been a refinance occurring.
You will have to sort it out, especially for the rental property when points may need to be treated quite differently.
I did not quite follow your question, but it would seem there might be a clear path for up-front (acquisition) LOF/points on the "new" primary residence. The timing is important, especially if there is perhaps a third house out there somewhere.....
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Nope, no 3rd house & regarding timing....
60 days after they closed on their now primary residence, is when they converted their previous house into a rental.Comment
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