Points on purchase of rental - HELP???

[blw300zx]

I'm so confused by what I'm seeing in Turbotax and the forums regarding points on the purchase of a rental property.  This is what the IRS publication says but I see everyone saying they are deductible.  HELP??

From IRS Publication 527:

The following are settlement fees and closing costs you can’t include in your basis in the property.
1. Fire insurance premiums.
2. Rent or other charges relating to occupancy of the property before closing.
3. Charges connected with getting or refinancing a loan, such as:
a. Points (discount points, loan origination fees),
b. Mortgage insurance premiums,
c. Loan assumption fees,
d. Cost of a credit report, and
e. Fees for an appraisal required by a lender.

[Critter-3]

On a Sch E you will enter the rental income  and the expenses  along with the BASIS for depreciation.   If you are a new landlord I highly recommend you do more research (read the Sch E instructions and all of the pub 527 along with the form 4562 & it's instructions so you understand basis and the depreciation you must take.  POINTS are not added to the basis of the property but are amortized over the life of the loan.  

Or use a paid tax preparer so you get started on the right foot  and get educated.  

[blw300zx]

Thanks for your answer. 

So it seems like you are saying that the points get amortized over the life of the loan vs adding to the basis of the property.  That makes sense although when you go into TT to add that item it only references refinance points. 

So if we purchased a rental in 2020 and paid points on that purchase and then refinanced it in the same year should I see a full deduction of the original points since that loan was refinanced?