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.
