I refinanced my home where I have home office for my business. I paid 9K for point, received 6k as lender credit. The deductible closing cost with refi was 2.5K without lender credit and it was no cash-out refi.
If there was no lender credit, I know I can deduct 9K point in Sch A and depreciate 2.5K closing cost over the 39yr as bldg. With 6K lender credit, I'm lost and not sure where and how to allocate. Should I decrease Sch A point deduction to 3K (=9k-6k) or should I decrease the building basis by 3.5k (=6k-2.5k)?
