Mortgage Points on Owner-Occupied Multiplex

[Whitney Leighton]

Hi all,

The end of 2023 we purchased a 4-plex with $12224 in discount points on the mortgage. Three of the 1-BR units are rented out and the one 2-BR unit is our primary residence. It is my understanding that for a rental property, the discount points are deductible in the year the property is purchased. We plan to deduct 1/5 of the total ($2444.80) on the Schedule E for each 1-BR unit. What happens if, in the next few years, we decide to move and convert the 2-BR unit to a rental unit? Is the remaining 2/5 of the total paid toward discount points a deductible expense at that point, or will that portion never be deductible?

Whitney