Refinancing fees for a rental property are evenly deducted over the life of the loan. To do this in TurboTax:
- Select Start/Revisit next to Federal > Wages & Income > Rentals, Royalties, and Farm > Rental Properties and Royalties (Sch E)
- Select Edit next to your property
- Select Add expense or asset
- Select Improvements, furnishings, and other assets and click Start
- select Add an asset
- Select Intangibles, Other property
- Select Amortizable intangibles
- Enter Refinancing Fees as the description and the rest of the information. Select Code 163 and the length of the mortgage as the useful life of the asset
- TurboTax will automatically deduct these over the life of the loan
Only put in the fees that are applicable to the rental portion of the property. If you only rent half the space, only enter half the expenses.
