Three years ago, Myriah refinanced her home mortgage and was required to pay two points on the refinanced loan. The loan was secured by the property, and the charging of points was the established lending practice in the area. The term of the loan was 20 years. Myriah sold the house earlier this year and paid off the refinanced mortgage.

In this year of the home sale, is Myriah allowed any deduction with respect to the points paid on the refinanced mortgage?

a. Yes, she can deduct the full amount of the refinanced loan points in the year of sale because none of these points have been previously deducted.

b. No, the full amount of the refinanced loan points were already deducted in the year the home mortgage was refinanced.

c. No, points paid to refinance a home mortgage are never deductible.

d. Yes, she can deduct the unamortized balance of the refinanced loan points in the year of sale.

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