@fanfare wrote:
IRS says (Pub 530):
General rule. You can't deduct the full amount of points in the year paid. They are prepaid interest, so you must generally deduct them over the life (term) of the mortgage."
They then go on to list nine tests that all must be satisfied to allow a full deduction.
Considering the general rule, the implication would be that the tests are rarely met.
@zomboo
There's nothing difficult or special about the 9 conditions. Did you read them? Nothing there is likely to trip up a typical borrower except 5 and 6. I qualified every time I bought a house.
