er $24,000 in points. On September 1 of the current year, the Devons refinanced their $650,000 balance of the mortgage with another 30-year mortgage. To get a lower interest rate, the Devons paid the lender points totaling $13,000. At the time of the refinancing, the Devons had unamortized points from the first loan of $1
er $24,000 in points. On September 1 of the current year, the Devons refinanced their $650,000 balance of the mortgage with another 30-year mortgage. To get a lower interest rate, the Devons paid the lender points totaling $13,000. At the time of the refinancing, the Devons had unamortized points from the first loan of $1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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. Points (OBJ. 4) Years ago, the Devons took out a 30-year mortgage on their vacation home. When they originally took out the loan, they paid the lender $24,000 in points. On September 1 of the current year, the Devons refinanced their $650,000 balance of the mortgage with another 30-year mortgage. To get a lower interest rate, the Devons paid the lender points totaling $13,000. At the time of the refinancing, the Devons had unamortized points from the first loan of $18,000. How much can the Devons deduct as points on their tax return for the current year?
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