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Book Reports
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| Number of pages / Number of words: |
5 / 1281 |
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Points are deductible in certain ways by points paid on a loan incurred to purchase the taxpayer's principal residence are deductible.
19) Acquisition indebtedness is in respect to qualified residences by it is any debt secured by the residence and by acquiring, constructing, or substantially improving the qualified residence...
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It might be qualified if the taxpayer acquires the residence within 90 days before or after the date that the debt was incurred. The limitations for this are $1,000,000 limitation of indebtedness incurred after October 13, 1987; any indebtedness incurred before that has no limitations. Home equity indebtedness interest can be deducted, but has limits as well...
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