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    #1

    Interest Rate Buy-Down

    I have a client (farmer) who paid Farm Credit Services money to buy-down the interest rate on two of his loans. My gut (although I haven't had breakfast yet) tells me this would be deductible ratably over the life of the loan; however, I'm not really sure and have not been successful in finding any information (cite) on the subject. Can someone help? Thanks again!
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    #2
    Hi Mo - believe you are correct that the "points" are deducted ratably through the life of the loan except in cases where they are paid for personal residence acquisition. See pub 551

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      #3
      Thanks!

      The interest related to two parcels of farm ground....no structures on either. I was hoping to find something written just so I would have it to include with my client file. I really appreciate you taking the time to answer my question.

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