Eve purchased a personal residence from Adam. To sell the residence, Adam agreed to pay $$4,500$ in points related to Eve's mortgage. What could be the tax consequences from the perspective of both Eve and Adam.

Tax consequences for Eve

multiple choice $1$

Mortgage points are deductible from carrying basis of the house.

Mortgage points are deductible as an itemized deduction.

Mortgage points are not deductible from carrying basis of the house.

Tax consequences for Adam

multiple choice $2$

Mortgage points are deductible as itemized deductions.

Mortgage points are not deductible at all.

Mortgage points are deductible as other deductions.