Point Deduction

Regarding deduction of the cost of points on the refinance of a home residence on your income tax, both Robert Bruss, and now Benny L. Kass are giving out incorrect information.

While it is true that points are not usually deductible in one year on a refinance, but must be amortized over the life of the loan, there are exceptions.

Before our refinance this year, I carefully investigated with the IRS, and found out that if the points are paid out of separate funds rather than the funds advanced by lender through the refinancing, and if a portion of the refinance money is used to improve your home, the points may be deducted in full in the same year.

With the cost of home remodeling, it is certainly possible to deduct the full cost of points on a refinance in the year the loan is obtained, as we are doing. You are doing a disservice to your readers not to get this information out to them before they refinance, so that they may pay the points out of separate funds and thus qualify.

DOROTHY E. FIERING

Thousand Oaks