This is true provided you're in the 28 percent federal tax bracket or higher.

If you didn't receive Form 1098, use Line 11 instead. Using the cash method means you report income in the year you receive it and deduct expenses in the year you pay the points. You use the cash method of accounting for expenses you probably do. If you want steady income, stick with short to medium terms.

For more on laddered portfolios, see our "Sizing up risks. In general, renting has a lower financial burden, requiring smaller monthly outlays. The amount of the points isn't out of line for your area. You put cash into your home purchase in an amount at least equal to the points you were charged. This is true provided you're in the 28 percent federal tax bracket or higher. San Francisco's Home Prices Remain Among the Highest in U. But as one software entrepreneur's experience shows, what looks appealing on paper can prove far messier in real life. You will get back the original face value of the bond, along with all the interest you expect.

They may still be deductible, but you have to deduct them over the life of the loan. But if you hold a bond to maturity, price fluctuations don't matter. Your loan is secured by your main home the one you live in most of the time. The points are clearly delineated on your settlement statement. When interest rates fall, bond prices rise, and vice versa. The points are computed as a percentage of the loan principal.

Points you pay on loans secured by your second home can be deducted only over the life of the loan.