How to write off points and refinance expenses?

Apr 05, 2009 1 Replies

First reply

Arthur Kamlet

The portion of the loan which replacd the emainin acquisition debt principal is itself acquisition debt, and the $1million loan limit applies. The remainder if any is home equity debt and interest on up to 100,000 is deductible for regular (not AMT) tax. Points paid, assuming a…

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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


The portion of the loan which replacd the emainin acquisition debt principal is itself acquisition debt, and the $1million loan limit applies.

The remainder if any is home equity debt and interest on up to

100,000 is deductible for regular (not AMT) tax.

Points paid, assuming a different lender, are amortized over the life of the loan.

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