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You purchased an investment property with a mortgage of $2 million that has a 10 year term and 20 year amortization. You hold the property
You purchased an investment property with a mortgage of $2 million that has a 10 year term and 20 year amortization. You hold the property for 7 years and bought a discount point of 1.50%.
What is your annual deduction for the mortgage point for each year that you do not sell the property?
What is the total deduction (both parts) related to the point in the year of sale?
Group of answer choices
$2,000/year, $22,000
$1,333/year, $28,000
$3,000/year, $12,000
$1,000/year, $11,000
$4,000/year, $4,000
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