Can I deduct points paid by the seller?

Treat seller paid points as if they were paid by you. If you itemize deductions, you may be able to deduct the points in full in the year paid if you meet certain requirements.

Or, you can also deduct them ratably over the term of the loan. TurboTax will help you determine the correct deduction. You must subtract the amount of seller-paid points from the purchase price in computing your basis in the property.