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additional refinance fees from prior loan for a sold property

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 unless the mortgage is financed with the same lender. If you used the same lender for the refinance, the unamortized fees on the first loan must be deducted over the term of the new loan.

How Do I Do This in TurboTax? it is with the same lender I still have an additional refinance fees from prior loan for a sold property

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1 Reply
KrisD15
Expert Alumni

additional refinance fees from prior loan for a sold property

Points should be listed as an asset for the rental since they are amortized (similar to depreciated).

Whether the points are expensed (new loan new Lender) or amortized at a new rate, the points are marked as sold in the asset list.

You will say "Yes" to Special Handling

On the following screen choose 

Transfer these fees for me to Other Expenses (if the loan is with a new Lender)

I'll enter the fees on my own later/ I refinanced with the same Lender (Same Lender) 

 

You will make the second selection and add the remaining points as a new asset with the new useful life (years of new loan) 

 

 

 

 

 

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