tbg@apollo.uucp (Tom Gross) (03/12/86)
> I heard that the points paid when refinancing are NOT deductable from your > income taxes. The reasoning given was you were not buying anything, just > refinancing. Still I thought points were interest whenever you paid them > and interest is deductable. Can anyone clarify the points issue? It's beginning to look like we need a net.taxes.are.refinancing.points.deductable newsgroup. this question KEEPS coming up, without any definitive answer. the CORRECT answer to all such questions is this pearl of wisdom taught to me by my father: "When in doubt, deduct it!" If you just follow that rule you will ALWAYS come out ahead. I am amazed by the number of people who evidently WORRY about the IRS finding an error in their return. For god's sake, DEDUCT THE POINTS, if it turns out that you aren't supposed to deduct the points the IRS will TELL YOU THAT, if they even notice, then you MIGHT HAVE TO PAY A LITTLE MORE OR GET BACK A LITTLE LESS. Not worried, Tom Gross Apollo Computer, Inc. Chelmsford, MA
rib@arrow.UUCP (RI Block) (03/14/86)
With regard to deducting points, I agree with the point of
view expressed by this article (N in a series?) namely:
....... the CORRECT answer to all such questions is
this pearl of wisdom taught to me by my father:
"When in doubt, deduct it!"
But I add the following advice, make sure the amount you report
as mortgage interest reconciles with what the bank reports.
Put the "points" on a separate line and just list the
name of the institution. I was advised not even to mark it special
as "points".
You can still be examined by the IRS and the examiner can
deny your exemption, but the status of points on a re-fi
seem cloudy enough to limit your potential liability to back taxes +
interest (e.g. not penalties).
Disclaimer: I'm not an accountant.desj@brahms.BERKELEY.EDU (David desJardins) (03/15/86)
In article <2c733a99.2a75@apollo.uucp> tbg@apollo.uucp (Tom Gross) writes: > > this question KEEPS coming up, without any definitive > answer. the CORRECT answer to all such questions is > this pearl of wisdom taught to me by my father: > > "When in doubt, deduct it!" > > If you just follow that rule you will ALWAYS come out > ahead. I am amazed by the number of people who > evidently WORRY about the IRS finding an error in > their return. For god's sake, DEDUCT THE POINTS, > if it turns out that you aren't supposed to deduct > the points the IRS will TELL YOU THAT, if they even > notice, then you MIGHT HAVE TO PAY A LITTLE MORE OR > GET BACK A LITTLE LESS. Doesn't it bother you at all to break the law? And to steal (yes, *steal*) from other Americans. I don't see how you can give any other name to knowingly (or at least negligently) filing a false income tax return. From the point of view above you should lie through your teeth. Your chances of even being audited are no more than one in 50-100; the penalties would have to be pretty steep to make your expected return negative. I really do despise you. You seem to have no sense of personal integrity or honor. And it doesn't bother you to steal from others. Pretty sick in my view. Fortunately the majority (at least for the moment) seem to agree with me, so the whole society of the United States doesn't collapse... -- David desJardins
ajf@pyuxa.UUCP (A Figura) (03/19/86)
In Article-I.D.: ucbvax.12384, David desJardins writes about his disagreement with the "If in doubt, deduct" doctrine: > Doesn't it bother you at all to break the law? And to steal (yes, > *steal*) from other Americans. C'mon David - lighten up (and wake up!). Your naivety amazes me! Nobody's talking about ILLEGAL deductions - we're discussing QUESTIONABLE deductions. And when there is ANY question involved, its ludicrous not to answer that question to your advantage (assuming there is SOME justification for your answer - which is certainly the case re: home mortgage point deductions, etc.). Our tax code is so inconsistent and so vague that there often is NO clear determination of what is and isn't a "valid" deduction - based on interpretation, you can often get either meaning out of the tax code. The deduction for home mortgage points is one of the more vague examples. So yes, when in doubt, DO TAKE THE DEDUCTION! What have you got to lose - there's a perfectly good chance that you deserve the deduction according to the spirit of the appropriate rule, so you're the one who's getting ripped off if you don't take the deduction. Its certainly no more questionable than the various loopholes and deductions that the "fat-cats" take, quite legitimately I might add, at the expense of all of us. Is it moral? Maybe not. Is it fair? Certainly not! Should you take the deduction? You certainly should! > I really do despise you. Don't despise people who are just taking their rightful advantage of the various loopholes in our tax system; instead, despise the silly system that allows all these ludicrous deductions and loopholes in the first place! If your moral convictions are such that you're satisfied paying more than your fair share of taxes, then you're a far better person than I! In the meantime, until the system changes to stop the kinds of ridiculous deductions (questionable or otherwise) that enables millionaires and multi-national corporations from paying zero taxes, and that encourages common citizens to take on the appearances of dishonesty, then the only person getting ripped off is ALL OF US! Al Figura @ Bellcore (which probably doesn't care one way or the other what I think about taxes - or much else) *** REPLACE THIS LINE WITH YOUR DISCLAIMER ***
shad@teldata.UUCP (Warren N. Shadwick) (03/20/86)
In article <12384@ucbvax.BERKELEY.EDU> (David desJardins) writes: In response to <2c733a99.2a75@apollo.uucp> (Tom Gross) who wrote: >> >> "When in doubt, deduct it!" > Pretty sick in my view. Fortunately the majority (at least for the > moment) seem to agree with me, so the whole society of the United > States doesn't collapse... > > -- David desJardins The structure of society in this country requires a majority to truckle to the I.R.S.? How far we've come (he says sarcasitcally)! -- Warren N. Shadwick ... ihnp4!uw-beaver!tikal!shad