Investors & landlords

Yes, you should split the rental portion manually and use the rest on your Schedule A for itemized deductions.  The rental portion should be amortized over the life of the loan (not the recovery period of the house-27.5 years).

• IRS Publication 527

Follow the steps below to add this asset for the appropriate outcome.

1. Sign into your TurboTax Account > Search (upper right) > Type rentals > Press enter > Click on the Jump to .... Link
2. Edit beside the rental you want to work on > Scroll to Assets > Edit
3. Select Yes to go directly to the asset summary >
4. Add or Edit the asset for the closing costs and or points > Select Intangibles, Other Property > Continue
5. Select Amortizable intangibles > Continue > Enter the details about your costs including the refinance date
6. Continue > Select the Code Section 163 for loan fees > Enter the useful life (number of months of the loan)
7. The final screen will show the deduction.  
8. See the images below.

Notice the end result is what you want to see, the date the refinance began in this example is 01/05/2020.  The date the refinance began will alter the deduction if it was not a full year.