No, you should not simply divide the points paid by 30 and enter that amount on Schedule A. The correct method for deducting points over the life of a mortgage, as outlined in the retrieved information, involves dividing the total amount of points paid by the total number of payments scheduled over the term of the loan. This calculation gives you the amount of points allocable to each payment. You then multiply this per-payment amount by the number of payments made in the taxable year to determine the deductible amount for that year. This method ensures that the deduction for points is spread evenly across all payments over the life of the mortgage, rather than simply dividing by the number of years in the mortgage term. This approach is consistent with the guidance provided in the excerpts from Rev. Proc. 87-15, Publication 530 (2022), 2023 Instructions for Schedule A, and Publication 527 (2020).
Sources:
§ 163. Interest
2023 Instructions for Schedule A (2023
https://www.irs.gov/faqs/itemized-deductions-standard-deduction
Publication 530 (2022)
Publication 927 (2020)
Rev. Proc. 87-15