Which of the following statements regarding the tax deductibility of points related to a home mortgage is correct?

Question

Quizplus · Accepted Answer

Points paid in the form of prepaid interest on a refinance are deductible over the life of the loan. However, points paid in the form of a loan origination fee on an original home loan must be deducted in the year they are paid, unless the points are for improvements in which case they can be deducted over the life of the loan. Points paid in the form of prepaid interest on an original home loan are also deductible in the year they are paid.

Which of the Following Statements Regarding the Tax Deductibility of Points