Expenses associated with acquisition of the property are added to the cost basis of that property and depreciated over time. An example of this would be the title transfer fees paid at the courthouse to remove the seller's name from the title, and put the buyer's name on it. In the case of refinancing a property you already own, these types of fees just flat out will not exist.
Expenses associated with acquisition of the loan are amortized (not capitalized) and deducted (not depreciated) over the life of the loan. Such expenses are entered as other asset type, amortizable intangibles and fall under rule 163:Loan Financing Fees. An example of this would be points, as well as survey fees you paid for a property survey if required by the lender as a condition of loan approval.
