How Should Interest Prepayments (Including Points)for Income-Producing Real Estate Be

question 16

Multiple Choice

How should interest prepayments (including points) for income-producing real estate be handled for tax purposes?

• A)They should be expensed over the first year
• B)They should be amortized over a period of no less than 60 months
• C)They should be amortized over the life of the loan
• D)They should be capitalized and deducted once the loan is paid off

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