You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you may be able to deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you may be entitled to deduct only $100 per year on your Schedule A Form.

To deduct points on a home purchase, you have to follow different rules.