Posted on: 31st Oct, 2011 11:16 pm
I have paid mortgage points and now I need to know whether or not these points are deductible when I pay taxes. Can anyone help?
hi redwine,
as per the tax laws, the points paid in case of a purchase money mortgage and in case of refinance are treated differently. on a purchase transaction, points paid in cash are fully deductible in the year the loan is closed. in case of a refinance, points paid in cash are also deductible. however, this deduction must be spread evenly over the term.
take care
as per the tax laws, the points paid in case of a purchase money mortgage and in case of refinance are treated differently. on a purchase transaction, points paid in cash are fully deductible in the year the loan is closed. in case of a refinance, points paid in cash are also deductible. however, this deduction must be spread evenly over the term.
take care