appraisals fee,
That's generally a loan acquisition cost. So it get amortized and deducted (not depreciated) over the life of the loan. Typical loan life periods are 15 years and 30 years - though I've seen a few for 40 years on commercial property.
processing fee underwriting fees and processing fees for the loan?
These are also loan acquisition costs included in the total to be amortized.
If so, under which category do I have to include them?
If things pertaining to the loan are broken down on your closing statement the same way they're broken down and separated in the program, then when you enter them in the program you'll see a separate entry in the Assets/Depreciation list called either "financing costs" or "Re-Financing Costs". However, since the "standardized" HUD-1 closing statement was basically done away with a few years back, seems that lenders just "make up their own" closing statement. Therefore, things don't always line up as we would like. So here's how to manually enter your loan acquisition costs as an Amortized asset in the Assets/Depreciation section. Do note that what matters here is the loan acquisition date, not the "in service" date of the property.
Now, if this is for a personal residence that was converted to a rental more than a year after you purchased it, then your loan acquisition fees were fully deductible in the year of purchase. So you can't "double-dip" and claim them again as an amortized asset. Just be aware of that. (That does not apply to refinancing the property if the refi occurred in the same tax year it was converted to a rental)
ENTERING POINTS
here's how to enter the points in the Assets/Depreciation section.. (does not apply to entering the property itself, or any other property assets.)
- Select the Add and Asset button. (go straight to the asset summary if presented that option)
- Select Intangibles/Other Property, then continue.
- Select Amortizable Intangibles, then continue.
- Describe it as something like "2021 Financing Fees". Then enter the amount, and the closing date of the loan. Then continue.
- Select "purchased new", then "100% business use", enter the closing date of the loan (again), then continue.
- Code section is 163:Loan Fees, then continue.
- Useful Life in Years is the length of the loan, then continue.
- You can "show details" if you like. Then continue, and that does it
