Problem 5-56 (LO 5-3) Steve purchased a personal residence from Adam. To sell the residence, Adam agreed to pay $3,900 in points related to Steve's mortgage. What could be the tax consequences from the perspective of both Steve and Adam. Tax consequences for Steve Mortgage points are not deductible from carrying basis of the house. Mortgage points are deductible as an itemized deduction. O Mortgage points are deductible from carrying basis of the house. Tax consequences for Adam Mortgage points are deductible as other deductions. Mortgage points are deductible as itemized deductions. OMortgage points are not deductible at all