Remove and list prior amortization as an expense. My
assumptions for this example: Old loan fees placed in service 6/1/2012. New
loan fees placed in service 6/1/2015. Old Loan fees $2k, half-year conv.
1st Part:
Your Property Assets page- Along
with your rental, you should see your 2012 refinancing fees and the
depreciation amount. Select Edit.
Continue through page descriptions of prior fees. Check box, the
item was sold, retired or disposed of and the date of your new fees as
the date sold, 6/1/2015. Continue to Confirm your Prior Amortization
page. Select Yes on the Special Handling Required page,
because the last option is true. Continue to next page and select radio button Transfer
these fees for me to Other Expenses. View Sch. E (page 1) in forms mode
to verify remaining depreciation and transfer to Other Expenses.
End result:
Current depreciation amount for old loan $56. $1600 remaining unamortized
balance to be transferred to other expense line. Your old fees may still show
on the asset page if you still have some depreciation for the current year (as
is the case for my example), but it will not be listed there in 2016.
2nd Part: Add
your 2015 New Loan Fees as a new asset. On the Your Property Assets page,
click Add an Asset link to enter
data for new loan fees, 6/1/2015.
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