- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
It depends. If you paid the entire penalty up front, you can deduct the entire amount as a 2020 rental expense. Otherwise spread the amount over the life of the loan.
If you deduct the entire amount, enter it has mortgage interest. You do not need a 1098 to enter mortgage interest from a rental.
If you are amortizing the prepayment penalty, enter the amount in Assets/ Depreciation as Intangibles, Other property.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
ā€ˇFebruary 24, 2021
5:47 PM