Refinancing mortgage points
Clients who buy a house get to deduct mortgage points all at one time. But when refinancing an existing mortgage, points can be deducted only over the life of the loan. Even if deducting 1/30th of the cost of the points each year (assuming a 30-year mortgage) is only $33 a year for each $1,000 paid, why throw it away? In the year they pay off their mortgage, clients also can deduct all points not yet deducted, unless they refinance again with the same lender.