FinanceAdmin•Yahoo Finance RSS•21 hours ago
Understanding the Tax Deductibility of Mortgage Points
This article explains the tax rules regarding mortgage points, detailing when they are deductible and the conditions that apply.
- • Mortgage points, or discount points, can lower your interest rate but their tax deductibility varies based on specific conditions.
- • Generally, if you pay points to obtain a mortgage for your primary residence, you can deduct them in the year you pay them.
- • However, points paid on refinancing are typically amortized over the life of the loan, affecting how they are deducted.
- • To qualify for the deduction, the points must be a standard charge in your area, and you must itemize your deductions on your tax return.
Source: Yahoo Finance RSS
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