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How should interest prepayments (including points) for income-producing real estate be handled for tax purposes? (A) They should be expensed over the first year (B)

How should interest prepayments (including points) for income-producing real estate be handled for tax purposes?

(A) They should be expensed over the first year

(B) They should be amortized over a period of no less than 60 months

(C) They should be amortized over the life of the loan

D) They should be capitalized and deducted once the loan is paid off

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