Finance
Points paid on a home purchase mortgage are generally tax-deductible because they represent:
AOrigination fees paid to the lender
BPrepaid interest, deductible in the year paid on a purchase mortgage✓ Correct
CTitle insurance premiums
DEscrow account deposits
Explanation
Discount points on a home purchase mortgage are prepaid interest and are generally deductible by the buyer in the year paid, subject to IRS requirements.
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