@Aa79
1) how much were the points? 9k
2) how much were the closing costs? 2.5k
3) how much was the lender credit? 6k
as it is not clear what the lender credit is for, it would be ratioanal and justifiable to prorate the $6k against the points and closing costs. That would mean 78% (9/11.5) of the $6k would be applied to the points, or $4.7k and then $1.3 would be applied to the closing costs. Who could argue with that?
The closing costs of $2.5k-1.3k are not deductible items.
The points of $9k-$4.7k or $4.3k are deductible over the life of the mortgage. They are NOT deductible in one year.
https://www.irs.gov/taxtopics/tc504
note the 9 requirements at this link to take a deduction for the points in one year. Since this is a refi, it fails #7, therefore it must be amortized ratably over the life of the loan.
(and I took your comments on 'home office' to mean you use a portion of your home as a 'home office;)
