Closing costs (including refinancing fees) for a refinanced loan for Rental Properties are added to the cost basis for the property. You may report this total as another asset for amortization under Rental Real Estate Assets. Choose Rental Real Estate for the type of asset, then "Amortizable Intangible" on the page titled "Tell Us a Little More." (Mortgage refinance costs are listed in the examples for this type of asset.) The Code section is 163: Loan fees, refinance costs. The amortization period would be the term of the new loan (default is 15 years).
Note that when you refinance your main home or a second home for personal use (such as vacation property or a cabin), you can only deduct points over the life of the loan and not refinance fees.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
