Hi Alicia and thanks again for the reply. However, reading the pub seems to counter your point. It actually says "don't add the points to the basis... deduct them over the term of the loan" -- which is what I'm trying to do. I'll include text from publication below.
Following your logic about a home mortgage, if it were a mortgage on a rental property (business expense), those loan costs would be deductible, or rather, amortized.
SO, all seems to say it should be amortized -- but I don't know how to get TurboTax to do that for this k-1, other than manually overrides in multiple places (4562 and then to Schedule E).
Any other thoughts on how to get TurboTax to do this properly - and automatically?
From Publication 551:
" If these costs relate to business property, items (1) through (3) are deductible as business expenses. Items (4) and (5) must be capitalized as costs of getting a loan and can be deducted over the period of the loan.
Points.
If you pay points to obtain a loan (including a mortgage, second mortgage, line of credit, or a home equity loan), don't add the points to the basis of the related property. Generally, you deduct the points over the term of the loan. For more information on how to deduct points, see Points in chapter 4 of Pub. 535
