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Posted by DonnaH on January 24, 2008, 10:23 pm
Please log in for more thread options Alan wrote:
> DonnaH wrote:
>> I refinanced the mortgage on my primary residence in July 2007, paying
>> points, and took about $10k out which I used to renovate one of the
>> rooms in the residence. Since I used the cash to improve the home, can
>> I deduct 100% of the points I paid in 2007 or must I amortize them?
>>
> No. You may only deduct those points that relate to the $10,000. The
> remaining points are amortized over the term of the new loan.
> E.g., your new loan is $100,000. Points were 1.5% or $1500. You could
> deduct $150 in 2007.
>
Thank you for the reply.
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