The Point Spread

If you refinance a mortgage, any points you pay must be prorated and deducted over the life of the loan. Many people deduct the first year's portion of the points, and then make the mistake of forgetting to follow through in subsequent years.

Another error: failing to deduct any un-deducted points when a refinanced loan is refinanced. Either way, you can file an amended tax return (Form 1040-X) for the year in question to claim the deduction.

In order to claim a refund, you must file an amended return by three years from the due date of the original return or by two years from when you paid the tax, whichever is later.

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