Three Years Ago,Myriah Refinanced Her Home Mortgage and Was Required

question 84

Multiple Choice

Three years ago,Myriah refinanced her home mortgage and was required to pay two points on the refinanced loan.The loan was secured by the property,and the charging of points was the established lending practice in the area.The term of the loan was 20 years.Myriah sold the house earlier this year and paid off the refinanced mortgage.In this year of the home sale,is Myriah allowed any deduction with respect to the points paid on the refinanced mortgage?

• A)Yes,she can deduct the full amount of the refinanced loan points in the year of sale because none of these points have been previously deducted.
• B)Yes,she can deduct the unamortized balance of the refinanced loan points in the year of sale.
• C)No,the full amount of the refinanced loan points were already deducted in the year the home mortgage was refinanced.
• D)No,points paid to refinance a home mortgage are never deductible.

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The extra return that investors require for choosing equity over risk-free securities, accounting for the higher risk of stocks.

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The process of determining the economic value of a whole business or company unit based on its financial performance and position.

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A bookkeeping technique where income and costs are logged at the point of occurrence, irrespective of the actual cash exchange dates.