Which of the Following Statements Regarding the Tax Deductibility of Points

question 9

Multiple Choice

Which of the following statements regarding the tax deductibility of points related to a home mortgage is correct?

• A)Points paid in the form of a loan origination fee on an original home loan are deductible over the life of the loan.
• B)Points paid in the form of prepaid interest on an original home loan are deductible over the life of the loan.
• C)Points paid in the form of prepaid interest on a refinance are deductible over the life of the loan.
• D)None of the choices are correct.

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