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Path: utzoo!linus!decvax!genrad!grkermit!masscomp!clyde!floyd!harpo!ihnp4!houxm!houxz!halle1
From: halle1@houxz.UUCP
Newsgroups: net.taxes
Subject: Re: House purchase deductions
Message-ID: <653@houxz.UUCP>
Date: Tue, 31-Jan-84 11:24:16 EST
Article-I.D.: houxz.653
Posted: Tue Jan 31 11:24:16 1984
Date-Received: Sun, 5-Feb-84 03:58:24 EST
References: <331@bunker.UUCP>, <699@elsie.UUCP>, <846@ihuxm.UUCP>
Organization: Bell Labs, Holmdel NJ
Lines: 9

Points for refinancing are NOT deductable in the year of payment.
They must be amortized over the life of the mortgage.  It is a
common misconception that refinancing and new purchase are the same
as far as tax laws are concerned.  The IRS has sais many times that
it is not so.  I have seen somewhere in an official IRS pub that
specifically points paid for refinancing are not deductable all at
once.  How to amortize them?  I don't know.  However, I suppose it
doesn't hurt to try to take it all at once.  You could claim
ignorance.  Besides you probably won't get caught.      Probably....