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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I am confused about the points paid in refinancing the residential

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I am confused about the points paid in refinancing the residential property. Is it deducted over the term of the loan or the whole amount paid in cash basis?

It seems that it can be deducted the whole amount:

is it correct?
Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

Thank you for your question, and thanks for using

Typically, when you refinance your home, the points are deductible over the term of the loan. However, if you refinanced to make significant improvements to your home you could deduct the points attributed to the improvements in the year they were paid.

However, the general rule is that refinancing points are amortized over the life of the loan. You can CLICK HERE for more details.

Please let me know if you need anything additional. Thanks again for using and have a great day.

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You should be aware that your question, as with most tax questions, can never really be answered completely...addressing all the permutations; that is because of the many assumptions that have to be made I have done my best to determine what I think you are asking and answering it in the most direct and understandable manner possible. If, however, after reviewing the questions, you have any uncertainties or further questions, please do not hesitate to ask.

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