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DO NOT USE CHATGPT AI TO SOLVE THIS! Facts for Questions 9 & 10 Larry buys a condo in January of 2021for $250,000. He pays

DO NOT USE CHATGPT AI TO SOLVE THIS!

Facts for Questions 9 & 10

Larry buys a condo in January of 2021for $250,000. He pays $5,000 in points for an interest-only, adjustable-rate mortgage loan for $245,000. 9. He will be able to deduct all of the $5,000 in points on his 2021 income tax return (Schedule A), in addition to any mortgage interest that he pays during the year. True/False

10. Larry decides to refinance his mortgage with a fixed, low-interest rate (3.0%), 10-year mortgage on January 2, 2022. He has to pay a point of $2,450 to the new lender, as part of the fees for the new loan. Larry will be able to:

  1. Deduct $2,450 of refinance points on his 2022 Schedule A.
  2. Deduct $245 of refinance points on his 2022 Schedule A, and another $245 each of the next 9 years.
  3. Deduct $163 of refinance points on his 2022 Schedule A, and another $163 each of the next 14 years

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