Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: Notesfiles; site gypsy.UUCP Path: utzoo!watmath!clyde!burl!ulysses!allegra!princeton!siemens!gypsy!rws 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> Lines: 19 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