If mortgage points were paid by my employer and included in taxable income, is it still deductible on my taxes

Answer 1

You can never deduct anything you didn't actually pay. Since this was an employer-provided benefit, it is INCOME, not a DEDUCTION. That's why it is included on your W2.
Please don't just take my word for it - get with a tax professional if you're confused. Most will answer a question like this over the phone at no charge. Then you at least know who you're talking to.

Answer 2

This is would not be an employer benefit plan that everyone in the company get the same benefit. So this should be includable in you taxable income but you don't get the itemized benefit. Anything that an employer does for there employee's that is not part available and required is considered income for the employee and is not in titled to tax benefits in your case an itemized deduction for point on a home.

Answer 3

Yes, it is still deductible for you. But at the same time, you will have to reduce the base of the cost of your home.

On balance it is still a good deal. Because capital gain in the future is most likely to be at a lower rate than your current tax braket.

Best wishes.