Points paid to refinance a mortgage on a principal residence are fully deductible in the year paid.

Question

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Points paid to refinance a mortgage on a principal residence are generally deductible over the life of the loan, not in the year paid. There are some exceptions, such as when the refinance is used to make improvements to the home, but in general, points paid for a refinance are not fully deductible in the year paid.

Points Paid to Refinance a Mortgage on a Principal Residence