I'm trying to dispose of the asset and expense the amount that was not depreciated.
Your amortized costs are not depreciated. They're deducted over the life of the loan. So you're trying to go ahead and finish deducting the cost of the old loan. Here's how to do it.
Under the "Rental Real Estate Assets (Depreciation)" section, there's another section called "Disposal of Rental Real Estate Property". Elect to start/update that.
Elect to EDIT the asset that represents your finance fees on the "OLD" loan.
Indicate that you sold it, and continue.
For the date you "sold" those finance fees, enter the closing date of your new refi loan.
Enter the TOTAL AMOUNT of your financing fees for the old loan in "BOTH" boxes, and continue.
Now the loss amount shown is the remaining fees to be deducted, and they will all be deducted from 2019 income on the 1065 return.
