In the event that the buyer has deducted points paid by the seller, the buyer must do which of the following?

Unset starred question

A buyer is never allowed to deduct the points paid by the seller.

Increase the sales price of the home and determine a later gain or loss on the sale of the home by the amount of seller paid points that the buyer has deducted.

Reduce his$/$her basis in the home for determining a later gain or loss on the sale of the home by the amount of seller$-$paid points that the buyer has deducted.

The buyer need not do anything.