[net.taxes] Points paid for house loan -- deductible?

patch@orca.UUCP (04/05/84)

	Are "points" (up-front squeeze money paid to get a loan)
	deductible?

	I called the IRS' Tele-Tax phone recording #233 and it was my
	interpretation that the points ARE deductible except for VA loans.
	My wife called the local (Portland OR) tax help number and the
	helpful IRS agent told her the points ARE NOT deductible.

	Someone else mentioned that the points may be deductible as a moving
	expense, but in my case it was the result of refinancing a loan for
	my house.

	Any helpful suggestions?

	PS: Why the heck are we paying "points" for a loan anyway?  Isn't
	the interest rate the cost of the loan?


Pat Chewning
Tektronix Engineering Computing Systems 
PO Box 1000 DS 61-183
Wilsonville, Oregon 97070 USA

tektronix!tekecs!patch