On December Bernie took out a 15-year loan for $300,000. He paid 2% in points in order
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On December Bernie took out a 15-year loan for $300,000. He paid 2% in “points” in order to get the loan, or $6,000. This is essentially prepaid interest. If the loan is used to purchase his principal residence, what is the maximum he can deduct in the current year? If the loan is used to purchase a home he will use as a rental property, what is the maximum he can deduct?
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ANSWER The deduction for points paid on a mortgage loan depends on several factors including whether ...View the full answer
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Related Book For 
CCH Federal Taxation Basic Principles 2020
ISBN: 9780808051787
2020 Edition
Authors: Ephraim P. Smith, Philip J. Harmelink, James R. Hasselback
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