What POINTS means: A loan-origination fee (one-time charge paid for the use of money) that a buyer generally may deduct as interest. This amount can generally be deducted in full if paid for the purchase or improvement of a principal residence. The points are otherwise deducted over the term of the loan.
- Definition Principal Residence:
- Dictionary residence is generally the home in which a taxoayer lives most of the time. A taxpayer who sells a principal residence that he or she owned and lived in for at least two years in the five-year period points definition.
- Definition Passive Income:
- Dictionary Passive income is income from business activities in which the taxpayer does not materially participate, and most rental activities. See also Material Participation and Portfolio Income points explain.
- Definition Permanent And Total Disability:
- Dictionary prevents an individual from engaging in any substantial gainful activity because of a medically determined physical or mental impairment that is expected to result in death, or that has lasted or is points what is.
- Definition Prepaid Interest:
- Dictionary advance is deductible only as it accrues. The one exception to this rule is for certain points paid by a cash-basis taxpayer to obtain financing for a loan used to purchase, reconstruct, or improve points meaning.
How works Points meaning in Tax definitions P .