Under this scenario, when the points transfer to Misc Expenses, they transfer at 100%, and NOT at the rental use percentage.
Further explanation:
If the origination points at the time the mortgage was taken out stood at $10,000 and you used the property 75% rental and 25% personal, then the program correctly depreciates the points at 75% every year, BUT then when you do a refi (and at this point of time let's say the depreciated points stand at $9,000), then following the steps you outlined, the FULL $9,000 gets transferred to Misc Expenses (in Sch E). Shouldn't just 75% of $9,000 go to Misc Expenses (and the balance 25% of $9,000 go to Sch A)?
