PREPAID INTEREST (POINTS)
01.Core Concepts
• Generally amortized over life of loan • Exception: Points paid in the acquisition or improvement of principal residence • Entire amount is deductible in year paid. • Only points paid on the first $1 million of acquisition indebtedness incurred on or before December 15, 2017, is deductible. • For tax years 2018-2025 and after*, only points paid on the first $750,000 of acquisition indebtedness incurred after December 15, 2017, is deductible. *Made permanent by OBBBA.