Cynthiad66: when you say, "If you meet all the above criteria, you can either deduct all your points in the year you paid them or deduct them in equal increments over the life of the loan. Either way, you'll need to itemize to get the deduction."
Question: Is this my choice?
Although I can deduct all the points in this year's return (because I purchase the house as my residence, not a refinance operation), I don't want to do so. I do not have enough itemize deduction this year, i.e. I will use the Standard Deduction method to file my return. Hence, if I do not spread the points, the whole amount of the points will be lost. If I choose to spread the points over the life of the loan, I may have a chance to itemize in future years and get some deduction whenever I itemize. So is it my choice to deduct all the points in one year or spread it over the life of the loan? Thanks.
