Investors & landlords

There is a difference between loan fees and other closing costs.

1. See the following difference between loan charges and closing costs.
   1. Loan charges - Loan charges are part of the loan and not added to cost basis
      • -Application fees
      • -Lender fees
      • -Appraisal Fee
      • -Inspection Fee
      • -Condo Questionnaire
      • -Credit Report
      • -Debt Report
      • You can't include in your basis the fees and costs for getting a loan on property.
   2. Government Recording and Transfer Charges
      • -Recording fees
      • Title Charges
      • -Lenders Tile Policy
      • -Settlement or Closing Fee
      • -MLC  - Assuming it means Municipal Lean Certificate
      • -Title Exam
      • -Owners title policy 
2. See the information for each item below.
   1. I would guess the useful life the solar panels is significant so you can use a separate asset but still 27.5 year recovery for residential rental if you want to track it separately.  
   2. For the battery backup the life may be different and shorter so for this item you can use a different recovery period.

Loan Fees are actually amortized which is similar to depreciation:  See the instruction on how to enter those below.

1. Sign into your TurboTax Account > Search (upper right) > Type rentals > Press enter > Click on the Jump to .... Link
2. Edit beside the rental you want to work on > Scroll to Assets > Edit
3. Select Yes to go directly to the asset summary >
4. Add or Edit the asset for the loan refinance costs > Select Intangibles, Other Property > Continue
5. Select Amortizable intangibles > Continue > Enter the details about your costs including the refinance date
6. Continue > Select the Code Section 163 for loan fees > Enter the useful life (number of months of the loan)
7. The final screen will show the deduction.  

@AutoLSD