Because this is a rental property the closing costs listed on your HUD-1--loan fees, title fees, and recording fees,etc--are capital expenses. You may amortize them over the life of the mortgage.
Turbotax will do all the work. The program will ask if you refinanced your property and then create an asset for your refinancing fees. To enter your refinancing fees, please follow these steps:
- Click on the Business tab
> Continue > I'll choose what to work on
- In the Rental Properties and
Royalties section, click the Start/Update button. [See Screenshot #1, below.]
- If you have already started
adding information about your business, you will be asked if you want to
review your rental and royalty information. Click the Yes box.
- When you come to the Rental and
Royalty Summary screen. Click on the Edit box next to the
property. [Screenshot #2]
- On the Review Your [address] Rental Summary screen, in the Expenses section, click on Start/Update. [Screenshot #3]
- You will come to a screen, Did You Refinance? Mark the Yes radio button and click Continue. [Screenshot #4]
- Continue through the screens, entering the requested information.
- TurboTax will create an asset, "2016 Refinancing Fees," which you can review in the Assets section of the Rental Summary Screen. [Screenshot #5]
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