Finance
In NJ, 'points' paid on a mortgage for a primary residence may be:
ANever deductible for federal income tax
BDeductible for federal income tax in the year paid, subject to IRS requirements including that the loan is for purchase of a principal residence✓ Correct
CDeductible only by corporations
DOnly deductible over the life of the loan with no exceptions
Explanation
Under IRS rules, points paid on a home purchase mortgage for a principal residence are generally deductible in the year paid if specific requirements are met (the loan is used to buy/build the principal home, the points are normal in the area, etc.).
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