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When Are Points Paid on a Loan Deductible as Interest

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When are points paid on a loan deductible as interest expense?


Definitions:

Headwaters

The location or general area where a stream or river begins.

Perennial

Describes plants that live for more than two years or streams that flow continuously throughout the year.

Gradient

A rate of inclination or slope, or the rate at which a physical quantity changes with respect to change in another quantity.

Cross-sectional Area

The area of a particular section of an object or material that is exposed when it is cut through by a plane.

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