In 2008 I refinanced my second home, that is occupied by my daughter (not rental) for about $400,000. The expenses consisted of about 2 points, title, insurance, fees, notary, etc. but I did not pay anything out of my pocket (except appraisal). From the new loan amount they paid off the original loan of about $120,000, about $15,000 in points and expenses, and the difference of $265,000 was directly deposited in my bank account. From the money received by direct deposit, I paid off two other loans on two small industrial condominiums. Were my proceeds $280,000 or $265,000? How can I write off the points and refinance expenses? Your help is greatly appreciated.
Thank a lot! John