A taxpayer pays points to obtain financing to purchase a rental house.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 rental house.At the election of the taxpayer,the points can be deducted as interest expense for the year paid.
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Points paid to obtain financing for a rental property must be capitalized and amortized over the life of the loan, not deducted in the year paid.

A Taxpayer Pays Points to Obtain Financing to Purchase a Rental