Claudia Refinances Her Home Mortgage on June 1 of the Current

question 539

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) $3,600
• B) $70
• C) $120
• D) $0

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Definitions:

British Clergyman

A religious leader authorized to perform sacred rituals and provide spiritual guidance within the context of the Christian Church in Britain.

Malthus

Refers to Thomas Malthus, an English economist and demographer known for his theory that population growth tends to outpace the growth of food supply, leading to inevitable checks on population.

Indefinitely

For an unspecified or unlimited period of time.

Shrinking Population

A demographic trend where the number of individuals in a population decreases over time due to factors like low birth rates, high death rates, and emigration.