In Which of the Following Situations Are Points Paid on a Home

question 54

Multiple Choice

In which of the following situations are points paid on a home mortgage loan not deductible in the year of payment?

• A)purchase
• B)refinance
• C)construction
• D)improvement

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Definitions:

Federal Budget

The annual financial statement presenting the government's proposed revenues and spending for a financial year.

Crowding In

An economic situation where increased government spending leads to an increase in private sector investment.

Crowding Out

A phenomenon where increased government spending leads to a reduction in private sector investment due to higher interest rates.

Increase Taxes

Refers to a government's decision to raise the percentage of compulsory contributions on personal or corporate income, goods, services, or transactions, often aimed at financing government expenses.