Deducting Points paid on loan origination

[Lyle Cooper]

I bought a small building in 2017. I bought my mortgage interest down by 0.75%. It costs me $25,000 (Points paid). I have no income in 2017. Can I defer when I write deduct the points paid? Or am i forced to amortize it over the life of the loan? 25000/30 = $833. I’d like to defer to 2018 or 2019. Thanks!!

[Ashish Acharya]

@Lyle Cooper

Unless this small building is your home or the mortgage on this building is secured by your home, you are not allowed to deduct a point in a year you pay it. 

If this is not your home, you have to amortize it over the life of the loan.  

Have you placed this property in service yet? if not, the amortization of the point possibly can be added to the basis of the property so that you are not losing a year of the deduction.  If already placed in service, I would still deduct it even though you have a loss as you can carry forward your loss.