Can You Deduct Points On A Second Home. Generally points you pay to refinance a mortgage arent deductible in full in the year you pay them. If the points you paid meet a nine-point test of.
And IRS says that seller-paid points may also be deductible. You can only deduct points you pay on loans secured by your second home over the life of the loan. If you do not deduct any points before selling or refinancing the house you can deduct them at once.
If you do not deduct any points before selling or refinancing the house you can deduct them at once.
If your second property is a personal residence then youre eligible to deduct mortgage interest in the same way as you would on your primary home. Instead you have to spread the deduction over the life of the mortgage. The Tax Cuts and Jobs Actthe tax reform package passed in December 2017lowered the maximum for the mortgage interest deduction. If you do not deduct any points before selling or refinancing the house you can deduct them at once.
