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From: rws@gypsy.UUCP
Newsgroups: net.taxes
Subject: Re: taxes & home purchase
Message-ID: <36300008@gypsy.UUCP>
Date: Fri, 23-Aug-85 09:17:00 EDT
Article-I.D.: gypsy.36300008
Posted: Fri Aug 23 09:17:00 1985
Date-Received: Sun, 25-Aug-85 04:39:06 EDT
References: <10951@rochester.UUCP>
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Nf-ID: #R:rochester:-1095100:gypsy:36300008:000:552
Nf-From: gypsy!rws    Aug 23 09:17:00 1985


Your points can be in corporated in your mortgage as an "origination fee" or
"discount ".  The former is deductible in the year you
take the mortgage; the other (I believe) translates into a higher effective
annual interest rate, so that the deduction is spread out over the life of
the loan.

Your bank chooses how to divide the points between the categories.

Interest deduction would be due in the year it was owed, not the year it was
paid.

Bob Schwanke

Siemens Research
Princeton, NJ
08540-6668

seismo!princeton!siemens!rws