I also confirm that Turbo Tax, at this time (April 2022) in Turbo Tax Premier, does not properly expense the remaining points from the old loan when refinancing with a new loan. Here are my steps.
I edited the mortgage points item in my Schedule E Assets section:
- marked them as Sold / Retired etc. In further questions:
- Do they require Special Handling? No.
- Date or retirement / sale: closing date of new refi loan.
- Sale price: LEAVE BLANK!!! . Sale price portion used for business: $0.
--> Sale price must be blank. If I set it to 0 then Turbo Tax complains .. something about form 179 and that intangibles must have the sale price blank..
- Finally I go to Miscellaneous section in Expenses and add a new line item as "Deductable remaining old loan costs".
Note that Turbo Tax amortizes a small portion of the old loan in the Assets section as above and prorates to the months in the year before the month of refi loan. This has to be taken into the account when calculating the remaining portion of the loan to be expensed in Miscellaneous.
