In article <Tn9Cl.1836$6n.554[at]nwrddc01.gnilink.net> ,
John Johnson <john5646john[at]NOSPAM[at]hotmail.com> wrote:
- quote -


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.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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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

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<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >