@pnored please follow along so we can all be absolutely certain that not only are you being provided correct information, but that you understand and interpret it correctly too. I would feel terrible if the IRS flagged your return for a mistake because of a misunderstanding or misinterpretation on your end.
@AmyC I suspect we're on the same page, and just saying the same thing differently. Else, we're not talking abut the same thing. Here's my attempt to get us on the same page, regardless of whose page that is. 🙂
I initially entered the asset back in 2012 using the below instructions (more comments by me, after the instructions)
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.
- Select Code section 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
Now I've checked the above instructions in TTX 2012 desktop, and they still apply vet-batim.
I just checked the below instructions for deducting remaining fees, and it works in TTX 2022 desktop exactly as stated in those instructions "provided" the amortized asset was entered per the above instructions to the absolute letter of perfection, with the key thing being that Code Section 163: Loan Fees was selected. I don't see a need to provide screen shots at this time, since you can confirm one way or the other on your end. Please take note of my comments after the below instructions.
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 or the date you closed on the sale; whichever applies. 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...."
Now on the last screen titled "Depreciation Deduction Amount" it does show a $21 deduction for 2022, which is correct. Then it goes on to state that "in addition to to the $21, you have an additional $271 of refinance fees from your prior loan......" It also gives me the option to select "Transfer these fees for me to Other Expenses", and I do select that option and continue.
When I go to the rental expenses section and work it all the way through. The screen past the mortgage interest and other interest screens is for miscellaneous expenses, and I do see listed there an expense clearly labeled "Unrealized Refinancing Fees 2012 Refinancing Fees" with an amount of $271. Exactly what I would expect.
Are my expectations wrong maybe, and the program isn't working correctly or as intended? I really do want to be on the same page as everyone else is, with this.
