Which of the following statements is false?

A.Points paid in refinancing a residential mortgage are fully deductible in the year the loan is closed providing theymeet the area's business practice criteria.

B.Appraisal fees, preparation costs for legal documents, and notary fees are not for the use or forbearance of money and therefore are not deductible as interest although some lenders may label them as "points."

C.Formortgages on commercial property, points constitute prepaid interest and may not be deducted in full in the year paid, but instead must be deducted (amortized) over the life of the loan.

D.If a taxpayer refinances his residential mortgage but fails to pay the points out private funds, and instead had the points deducted from the loan proceeds, the taxpayer may only deduct the pointsratablyover the life term of the loan.