What is Point's tax treatment? What taxes do I pay?

You should consult with your tax advisor before taking an investment from Point. Tax laws are complex, vary by state, and your situation may have unique characteristics.

Here are some key points for many homeowners:

• Point (and Point's investors) pay taxes on its share of any appreciation, reducing your capital gains if you exit through a sale.
• If you pay Point at the end of the term without selling the property, there is no capital gains event because you did not sell your home. However, you may have opportunities for tax deductions based on the amount you paid to Point.
• The money you receive from Point is a tax-deferred payment, meaning you do not pay taxes on it until a specific event, such as selling the home or settling the investment, triggers a taxable event.
• You may be subject to taxes related to your Point Home Equity Investment (HEI) in the following situations:
  • You sell your home.
  • You repurchase the obligation from Point for an amount less than the Investment Amount.
  • Point cancels the Agreement, releasing you from any obligations.

Homeowners should consult with a tax advisor to understand the tax treatment of the Point Homeowner Agreement as it applies to their unique situation. Point does not provide tax advice or warranties concerning the tax treatment of its agreements.