So, it looks like I need to file Form 3115 to correct the error from the previous CPA, adjusting the depreciation and creating an amortization for the "loan fees" that were incorrectly added to my basis. I expect the impact to be minimal, but better to make sure it is correct.
I have a question on my refi... When you refinance the property, I understand that loan expenses (appraisal fees, credit report, points, etc.) are added as a new asset and amortized over the life of the loan (15 years in my case). I also understand that costs related to acquiring the property (title fees, etc.) are added to the "basis" of the property to be depreciated over 27.5 years.
Here is my question... How do you "add to the basis" of a rental property in turbo tax years after it has been placed in service? Do I simply create a new asset, place it in service as of the refi date, and amortize it over 27.5 years (just like I did with the loan costs) OR do I go into the rental property details, and just manually add the amount to the "Cost" field? If I do the latter, the added amounts will not be depreciated over 27.5 years, but over the remainder of the 27.5 years since the property (not the refi) was placed in service.
Thanks...
