Yes. Our awesome Tax Expert @Vanessa A has provided accurate information in regards to refinance fees for rental property.
In a year of sale of the rental property they are also handled differently than the depreciable assets. The remaining balance of fees that have not been deducted at the point of sale are expensed as follows:
Deduct the balance of the refinance fees when the rental is sold: In the Assets/Depreciation section for that rental property, elect to edit/update the entry for your fees.
- On the 'Review Information' screen click Continue.
- On the 'Did you stop using this asset 2021?', click YES.
- On the 'Disposition Information', in the disposition date box enter the date you closed on the sale. > Continue.
- On the 'Special Handling Required?', click YES.
- On the 'Depreciation Deduction Amount', select Transfer These Fees For Me To Other Expenses. > Continue.
- You'll see the remaining fees of the refinance loan to be deducted in the Rental Expenses section. The entry will start with 'Unrealized Refinancing Fees....'
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