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How to enter amortization of mortgage points for Schedule A, itemized deductions in Lacerte

by Intuit Updated 2 years ago

Follow these steps to enter amortization of mortgage points on the Schedule A:

  1. Go to Screen 22, Depreciation.
  2. Select Schedule A from the left panel.
  3. Scroll down to the Federal Depreciation section.
  4. Select Schedule A (points) from the Form (Ctrl+T) dropdown menu.

  5. Enter the Date Placed in Service (Negative Date = Various).
  6. Enter the Cost or Basis.
  7. Select Straight Line (Method 91) from the Method (Ctrl+T) dropdown menu.
  8. Enter the Life or Class Life (recovery period automatic).
  9. Select 461=Sec. 461-Points from the Amortization Code Section (Ctrl+T) dropdown menu.

  10. Enter the remaining balance as Current depreciation/amortization (-1=none) [O] (if this is the final year).

To adjust the calculation of deductible points:

  1. Go to Screen 25, Itemized Deductions.
  2. Scroll down to the Interest section.
  3. 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.
Lacerte Tax

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