which of the following is not a condition for deducting points in the year of paymen 612751

Which of the following is not a condition for deducting points in the year of payment?

a. Correct. There is no AGI limit on deducting points.

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b. Incorrect. It is true that the proceeds of the loan must be used to buy, build, or substantially improve the taxpayer”s principal residence.

c. Incorrect. It is correct that the charging of points must be an established business practice in the area in which the mortgage is obtained.

d. Incorrect. It is true that the amount of points cannot exceed those generally charged in the area.

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