If certain conditions are met, a buyer may deduct seller-paid points in the tax year in which they are paid.

Question

Quizplus · Accepted Answer

According to IRS rules, if the certain conditions are met such as they must be paid by the buyer, the points are a percentage of the loan amount, and they're used to buy down the buyer's interest rate, then the buyer can deduct seller-paid points in the tax year in which they are paid.

If Certain Conditions Are Met, a Buyer May Deduct Seller-Paid