Robert Bruss Replies:

In the March 4 Letters, Todd P. Silverstein and Dorothy E. Fiering wrote to disagree with my article and that of Benny L. Kass on Feb. 11 in which we said that loan fee points paid to obtain a refinanced mortgage must be amortized (deducted) over the life of the mortgage.

Silverstein said loan fees paid to obtain refinancing are deductible if paid by separate check. His information disagrees with IRS Revenue Rulings 86-68, 87-15 and 87-22, which say that the IRS does not allow a current deduction for points on a refinanced mortgage, and such loan fees can only be deducted over the life of the loan.

Fiering correctly emphasized that if the purpose of the refinanced home loan is to pay for home improvements, then the portion of the points allocable to the improvement cost is deductible.