When I clicked 'yes' to special handling, it went immediately to the complete screen (unlike the 2018 refi that I closed out) and never allowed option to have remaining fees deducted/transferred to rental expenses as misc.
Here's how to enter your 2020 refi fees (for both loans obtained in 2020) so that you can property "expense" the remaining fees from the 1st refi of 2020. Now you could probably just enter those refi fees of the first 2020 refi in the Misc Expenses section. But I think it would be safer to "show the flow" from the assets/depreciation section of the program.
- On the assets/depreciation list first delete the currently entered refi fees for both loans that you establishded in 2020. (Get your details for each refi entry first!)
click the "Add an Asset" button.
- Select Intangibles/Other Property, then continue.
- Select Amortizable Intangibles, then continue.
- Describe the asset (Refi-1 maybe), enter the amount, then the closing date of that loan. Then continue.
- Select Purchased new, then select "this item was sold, retired, etc. etc. etc." For the date you sold/retired it, enter the closing date of the "newer" refi, or the day before.
- Select "used 100% for business" Then enter the closing date of "this" refi. Then continue.
- For code section, select 163:Loan Fees, then continue.
- For useful life in years, enter the contracted life of "this" loan, then continue (commonly 30 years or 15 years)
- For "Special Handling Required?" click YES.
At this point, I am expecting you will be returned to the "Your Property Assets" screen. If you are not, then skip down to the "******************" line below.
- If you are returned to the property assets screen, take note of the amount for those refi fees that show as a deduction here.
- You will need to manually enter the remaining fees to be deducted, as a Miscellaneous Expense in the Rental Expenses section. Make sure the remaining expenses were not"magically" entered already by the program, without letting you know this, and that you label the expense the same way you labeled them in the assets/depreciation section. I don't know if labeling them different would have the potential to "raise flags" or not.
********************
- Select the option to "Transfer the fees for me", then continue.
That "should* do it. You "might" see a bit of amortization on those fees on the "Your Property Assets" screen. If you do, then that's fine. But check the rental expenses section and you should see the remaining fees deducted as a Miscellaneous Expense.
