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#1
01-25-2008, 02:23 AM
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 Re: Points on refinance deductible if cash out used to renovate? Alan wrote: - quote - > DonnaH wrote: > > I refinanced the mortgage on my primary residence in July 2007, paying > > points, and took about $10k out which I used to renovate one of the > > rooms in the residence. Since I used the cash to improve the home, can > > I deduct 100% of the points I paid in 2007 or must I amortize them? > > No. You may only deduct those points that relate to the $10,000. The > remaining points are amortized over the term of the new loan. > E.g., your new loan is $100,000. Points were 1.5% or $1500. You could > deduct $150 in 2007. Thank you for the reply. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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01-24-2008, 04:20 PM
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| Re: Points on refinance deductible if cash out used to renovate? DonnaH wrote: - quote - > I refinanced the mortgage on my primary residence in July 2007, paying
The remaining points are amortized over the term of the new loan.> points, and took about $10k out which I used to renovate one of the > rooms in the residence. Since I used the cash to improve the home, can I > deduct 100% of the points I paid in 2007 or must I amortize them? No. You may only deduct those points that relate to the $10,000. E.g., your new loan is $100,000. Points were 1.5% or $1500. You could deduct $150 in 2007. -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
01-24-2008, 12:31 PM
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| Points on refinance deductible if cash out used to renovate? I refinanced the mortgage on my primary residence in July 2007, paying points, and took about $10k out which I used to renovate one of the rooms in the residence. Since I used the cash to improve the home, can I deduct 100% of the points I paid in 2007 or must I amortize them? -- << ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| cash, deductible, points, refinance, renovate |
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