Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10.1 exptools 1/6/84; site ihldt.UUCP Path: utzoo!watmath!clyde!burl!ulysses!mhuxl!ihnp4!ihldt!stewart From: stewart@ihldt.UUCP (R. J. Stewart) Newsgroups: net.invest Subject: Re: Tax deduction for cost of purchasing a home Message-ID: <2263@ihldt.UUCP> Date: Thu, 1-Mar-84 09:25:40 EST Article-I.D.: ihldt.2263 Posted: Thu Mar 1 09:25:40 1984 Date-Received: Fri, 2-Mar-84 14:17:24 EST References: <251@ihuxu.UUCP> Organization: AT&T Bell Labs, Naperville, IL Lines: 16 A small point, but one which might come back to get you one day, is that you shouldn't refer to mortgage points as "prepaid interest". Points are deductible in the year that you pay them. Prepaid interest is different, however, and deductions must be spread over the life of the loan. The example of prepaid interest given in Lasser's Tax Guide involves someone who needs a deduction in a particular year, so takes out a loan and pays all the interest up front. This person would not be allowed to take the entire interest deduction that year; they could only take the amount they would *normally* have paid. BTW, Lasser's answers a lot of the questions you asked about deducting house expenses. All the usual disclaimers about not being a tax attorney, etc. Bob Stewart