A taxpayer pays points to obtain financing to purchase a second residence.At the election of the taxpayer, the points can be deducted as interest expense for the year paid.

Name: A taxpayer pays points to obtain financing to purchase a second residence.At the election of the taxpayer, the points can be deducted as interest expense for the year paid.
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Points paid for a second residence must be amortized over the life of the loan and cannot be deducted in full in the year paid.

A Taxpayer Pays Points to Obtain Financing to Purchase a Second