@AmyC
So, step 3 requires you to do the math and the entry into Other Expenses.
I can't vouch for the online version. But with the desktop version the program will do that math "for you" and transfer the remaining fees to the Miscellaneous Expenses section in the program. It then gets transfered to/included with the amount on line 19 of the SCH E and labeled as "unrealized financing fees". Here's the procedure. Can you confirm weather or not it works the same for the online version? They should work, assuming the fees were correctly entered as an amortized asset to begin with.
DEDUCT FINANCING FEES OF OLD LOAN WHEN REFINANCING OR SELLING
In the Assets/Depreciation section for that rental property, elect to edit/update the entry for your points.
- On the "Review Information" screen click Continue.
- On the "Did you stop using this asset 2021?" screen, click YES.
- On the "Disposition Information" screen, in the disposition date box enter the date you closed on the new loan. Then click Continue.
- On the "Special Handling Required?" screen, click YES.
- On the "Depreciation Deduction Amount" screen, select Transfer These Fees For Me To Other Expenses. Then click Continue.
You'll see the remaining fees of the old loan to be deducted in the Rental Expenses section, very last screen of that section. The entry will start with "Unrealized Refinancing Fees...."
