Points - Indirect Home Based Business Deduction

[rsandy]

Client has a home based business and purchased his home in 2008. The points he paid on his mortgage loan and the interest, normally deductable on his Sch A, would reduce the amount he owes in tax if the points can be deducted on Form 8829. I know the interest can but what about the points? These amounts are being treated as indirect expenses. Thanks.

[Burke]

Points are simply prepaid interest and are deductible.

[Possi]

Yay!

Points are simply prepaid interest and are deductible.

I've been doing something right!!
=)

[Kram BergGold]

disagree

If a person is claiming a home office of say 20% then 20% of the points need to be amortized. Points are only deductible on Schedule A when they relate to the purchase or improvement of the primary residence.

[Davc]

If a person is claiming a home office of say 20% then 20% of the points need to be amortized. Points are only deductible on Schedule A when they relate to the purchase or improvement of the primary residence.

Agree.....