Thank you for your reply. I need to clarify further, for the sake of complete accuracy, that I already expensed the undepreciated “capitalized loan costs” in 2020 when I paid the loan off, so your answer confirms that this was correct – so now the issue is what to do the items that are normally added to the basis like title search fees or recording fees. They are still showing on my depreciation form at the 27.5 years rate, even though the loan is paid off. Do they need to remain there until the 27.5 years pass, or they can also be expensed as Other rental expense in 2022 because the loan is paid off (I did know what to do in 2020, so I had left them there)? Thank you.
