See if this makes sense below. You will find the prior amortization fees in the asset/depreciation section.
Refinance Fees from Prior Refinances
Charges paid by a borrower to get a mortgage refinance for a rental must be amortized over the life of the loan. In the year you refinance to a new loan (and retire the prior loan), any existing refinance fees from any prior refinances become an expense and need to be entered in as an "Other Expense" item. If the mortgage is financed with the same lender, the unamortized fees on the first loan must be deducted over the term of the new loan.
How Do I Do This in TurboTax?
Points are entered in the same area of interview where you track the depreciation of your rental property, or rental furnishings. Go to the Asset/Depreciation topic and indicate your prior loan fees are no longer in service. As you go through this area of interview you will be given the remaining fees that have not been expensed or amortized. These additional expenses need to be entered as an "Other Expense" item. TurboTax will help guide you along the way. Completing this is a three-step process:
1) Enter your new refinancing information as an amortizable intangible
2) Navigate to the Depreciation Section in Rentals and indicate you have retired ("disposed" of) the old refinance fees
3) Calculate the unused portion of the old refinance fees and enter them as an "Other Expense"
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