Mortgages & Loans
Are points paid on my mortgage deductible ?
Generally points are deductible in full in the year paid if 6 requirements are met. Form 1098 Mortgage interest statement is used to report the amount of the paid points. Points paid to refinance an existing mortgage must be amortized over the life of the loan unless the loan proceeds are used to substantially improve the main residence. The portion used to improve the residence can be deducted in full in the year paid. Speak to your local CPA about the 6 requirements.
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