@Carl In 2022 Desktop Premier their is an entire section of question after you enter your expenses. It ask if you refinanced and it takes care of the new loan for you totally automatic. However, I'm still having issue with the second step of dealing with your old points (new lender). At the end of entering your new loan fees/points it ask you if you have old points. Then it kind of just drops you at this point. But help has the copy/pasted info below on that screen. But nothing is automatic when you get to this point. I think I have gotten it figured out. I did read on another thread where when you edit the old points enter $0 for the amount that were sold for when disposed of. This does accomplish deducting the remaining points that have not been deducted but doesn't seem right to me. It think I will try to follow the below instructions.
Parrish
Refinance Fees from Prior Refinances
Charges paid by a borrower to get a mortgage refinance for a rental must be amortized over the life of the loan. In the year you refinance to a new loan (and retire the prior loan), any existing refinance fees from any prior refinances become an expense and need to be entered in as an "Other Expense" item. If the mortgage is financed with the same lender, the unamortized fees on the first loan must be deducted over the term of the new loan.
How Do I Do This in TurboTax?
Points are entered in the same area of interview where you track the depreciation of your rental property, or rental furnishings. Go to the Asset/Depreciation topic and indicate your prior loan fees are no longer in service. As you go through this area of interview you will be given the remaining fees that have not been expensed or amortized. These additional expenses need to be entered as an "Other Expense" item. TurboTax will help guide you along the way. Completing this is a three-step process:
1) Enter your new refinancing information as an amortizable intangible
2) Navigate to the Depreciation Section in Rentals and indicate you have retired ("disposed" of) the old refinance fees
3) Calculate the unused portion of the old refinance fees and enter them as an "Other Expense"
