Seller financing discount points, taxable income, or deduction

[Travis Brizendine]

We are under contract on a property. We have 60 thousand dollars in a 1031. The seller is willing to charge us 30k in points to seller finance the deal. However, we would like 25k back after closing for repairs etc. Question: the funds he receives as “points” are they tax deductible to him, or is he taxed as income on that since it’s being received.

Thanks a ton in advance. *numbers are hypothetical*