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Can I take a deduction for points on a loan to improve my home?

Points paid on a home improvement loan are fully deductible in the year paid if the loan is secured by your main home, you use the cash method of accounting, paying points is common practice in your area, the points are not in excess of the amount usually charged, the points do not replace other charges that are normally separately stated on the settlement statement and the funds you provided are at least as much as the points charged.

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