Lender credit for part of the closing costs is added to the cost of the property and the combined total of closing costs and property cost is the adjusted basis of the property for depreciation. The same would apply to lender credit for fees, which is assumed to be additional costs for purchase of the property.
Points are deductible over the life of the loan separately from the house itself because if a refinance occurs, with a different lender, the remainder can be deducted in full that year.
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