Expenses associated with acquisition of the property are capitalized and depreciated over time. If this is a refinance, then there will not be any of these expenses. Examples include title transfer fees, sometimes referred to as documentary stamps.
Expenses associated with acquisition of the loan are amortized and deducted (not depreciated) over the life of the loan. Examples would include points paid at closing as well as survey fees if a survey was required by the lender as a condition of loan approval.
