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I am confused about the points paid in refinancing the residential

property. Is it deducted over...
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:

http://www.irs.gov/taxtopics/tc504.html

is it correct?
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3/2/2013
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
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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 JustAnswer.com.

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 JustAnswer.com and have a great day.

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