Can I deduct points paid on a refinance?
You can deduct points paid on a refinance of your existing mortgage. The points are usually not fully deductible in the year they are paid, but can be deducted ratably over the life of the loan.
If part of the loan is used to improve your main home then the points related to that portion of the loan may be fully deductible in the year paid. TurboTax will help you determine the appropriate deduction.