Points paid to secure a loan are essentially prepaid


Points paid to secure a loan are essentially prepaid interest.  What is required for points to be deductible?

Is there a difference between points paid on the purchase of a primary residence and a second home such as a vacation cabin?

What happens to points paid to refinance?

Does the use of the funds matter when money is borrowed against the taxpayer's residence on an equity loan?

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Financial Management: Points paid to secure a loan are essentially prepaid
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