Question
On December 1 Bernie took out a 15-yearloan for $300,000. He paid 2% in points in order to get the loan, or $6,000. This is
On December 1 Bernie took out a 15-yearloan for $300,000. He paid 2% in "points" in order to get the loan, or $6,000. This is essentially prepaid interest. If the the loan is used to ourchase his principal residence, what is the maximum he can deduct in the current year? If the loan is used to purchase a home he will use as a rental property, what is the maximum he can deduct?
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
6th Edition
0273638335, 978-0273638339
