Loan amortization

[JCOX3PASA1]

Hi.  In 2014, I refinanced my rental property but forgot to set up amortization schedule and thus have not written off any of the fees. In 2020, I refinanced again and just now found that mistake.  Total fees from the 2014 loan were $3,000 ($100 per year) and at this point I figure that still have 23 years left on that loan and was going to accelerate the amortization and write off the remaining balance of the approx. $2300 (23*100). Does that seem appropriate?

As for the deduction that I lost for years 2014 – 2019, I don’t believe that it is worth refiling those tax returns.  (Basically water under the bridge).  Appreciate the help.

[ThomasM125]

You are correct, you can deduct the unamortized costs in the year you dispose of the mortgage. You can go back three years and amend returns, but it may be more trouble and expense than it is worth.

Another option is to catch-up the missed amortization in the current year by filing form 3115. You can see this article on how do do this:

https://ttlc.intuit.com/community/amend-tax-return/help/what-should-i-do-if-i-didn-t-take-depreciati...