Where to enter amortized loan fees for commercial loans?

[brfiesin]

My understanding is the Filing Fees, Loan Charges, Title Insurance, Commitment fee, closing fee, title fee, survey fee, and appraisal fees for my commercial loan are all amortized over the life of the loan.

I can calculate that, but as of now I'm just taking the prorated portion (Total amount / number months of loan * number of months in 2018) and docking it as an expense.

However, when I read other people's posts, it seems like they are doing that as part of turbotax, where it actually tracks it for you... Are they putting it in as depreciation, or is there something I'm missing where you can put this?

Thanks!

[Ashby]

Yes, a commercial property is treated like a rental property where you can amortize these costs. 

You enter these fees as an asset so they can be depreciated/amortized.

Go to Business Income and Expenses

Click on the business and go to expenses

Under Less Common Expenses, choose Assets

Go through the interview process and choose Intangibles like pictured in the image below. This will walk you through the process.

[hanguyens]

I followed the Turbo Tax tool to depreciate the intangible asset for my loan fees. However, the life of my loan is 5 years and the tool uses 15 years. Is there a way to manually change it? Thank you.

[DianeC958]

No, not unless you use TurboTax Desktop version.  You can take your information from TurboTax online and transfer it to the desktop version. You download your .tax file by going to Tax Tools on the left of TurboTax Online, Tools and click on Save your 2019 return to your computer.

Once you have loaded the Desktop version of TurboTax, you can open the file you just downloaded by clicking File A Tax File.  Once the information is loaded then you can make the changes needed and file your return.

In the desktop version you can switch to forms mode by clicking on the Forms icon in the upper right hand corner.  Look for the depreciation worksheet for the asset and change the number of years to depreciate the intangible asset from 15 years to 5 years.

TurboTax Desktop Version

@hanguyens