Thanks, I've read this publication a few times, however I still don't understand the steps in Turbo Tax to "increase my property's basis".
Do I:
A) Edit the property itself, and adjust the cost basis manually, causing the additional amounts to be depreciated over whatever is left of the original 27.5 year usable life OR...
B) Create another asset called for the amount in question, and amortize it over 27.5 years from the date of the refi?
To be clear, I am not talking about costs associated with the loan here. I'm talking about those associated with the property - like title fees, etc.
Or is there an option C) Since all the costs are actually caused by the act of refinancing (as opposed to a purchase), you can amortize the entire closing costs over the life of the loan, without worrying about what is related to the loan vs the property.
Am I making any sense?
