Finance
Iowa's points paid on a purchase money mortgage may be deductible for federal income tax purposes in the:
AYear after the loan closes
BYear the loan is originated (paid), as prepaid interest on a purchase of a primary residence✓ Correct
CYear the property is sold
DNever, as Iowa mortgage points are not deductible
Explanation
Discount points paid to obtain a purchase money mortgage on a primary residence are generally deductible as prepaid interest in the year paid, provided they meet IRS requirements. Refinance points must typically be deducted ratably over the loan term.
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