Claudia Refinances Her Home Mortgage on June 1 of the Current

question 97

Multiple Choice

Claudia refinances her home mortgage on June 1 of the current year.She obtains a 30-year mortgage at 5%.As part of the refinancing,she pays points of $3,600 (a customary practice in her location) .What amount,if any,of the points are deductible?

• A)$0
• B)$70
• C)$120
• D)$3,600

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Definitions:

Strategic Plan

A document that outlines an organization's strategy for achieving its goals over a specific timeframe, including objectives, action plans, and resource allocation.

Implementation

The process of putting a decision or plan into effect; execution.

Legal Control

The mechanisms, policies, and procedures put in place within an organization to comply with laws, regulations, and standards, ensuring lawful operation.

Ad Hoc Alliance

A temporary coalition formed for a specific task or objective, not intended as a permanent partnership.