Q: We purchased our home three years ago and refinanced our mortgage for the first time in July. We know we can write off the monthly mortgage-interest payments on the new loan, but what about the $2,700 in upfront “points” we paid to take the mortgage out?

A: All of the monthly mortgage-interest payments you paid on the old loan in the first half of this year, as well as monthly interest you pay on the new refinance through the end of 2006, can be deducted in a lump sum on the income-tax return due by April 15.

Unfortunately, the tax rules for deducting upfront points paid when refinancing aren’t nearly as generous: You will probably have to write the amount off, a little at a time, over the life of the new loan.

Let’s say you refinanced with a $175,000, 30-year loan and paid 1.5 points for the mortgage.

A point is equal to one percentage point of the total loan amount, so your points would total $2,625 ($175,000 times 0.015).

Because you chose a 30-year loan, you could deduct only one-thirtieth of the $2,625 annually in points – an amount equal to $88 per year – until the new mortgage is eventually paid off. If you sell or refinance again before the 30 years are up, you could write off the remaining balance of the undeducted points in a lump sum in the year that the sale or next refinance takes place.

Q: I live in an apartment building and have a one-year lease, but the property is being sold. Will the new owner be able to raise my rent, or will he have to honor my current rental contract?

A: When an apartment building is sold, the new owner takes over all of the property’s existing assets and liabilities. The landlord cannot change the terms of any existing leases, so you won’t have to worry about your rent being raised until your current rental agreement expires.

Q: My husband and I are getting a divorce. Instead of selling our home, my husband wants to give me $75,000 (half of the equity we have) and continue living in the property. If I agree, will I owe taxes on the $75,000 he pays me?

A: No, you probably won’t owe any taxes. According to the Internal Revenue Code, real estate transactions between spouses or divorcing couples aren’t taxable.

Remember, though, that you’ll be responsible for making payments on the mortgage that you and your husband jointly took out, even if you cash his $75,000 check, move out and sign a quitclaim deed that turns your half-interest in the property over to him. To protect yourself, consider making the deal contingent on your husband refinancing the home loan in his name only.