Can I deduct closing cost expenses for a refinance of a rental property if the closing costs were rolled into the new loan and not paid up front in cash?

[tax-me-senseless]

I understand fees for refinancing a rental must be deducted over the life of the loan (amortized). The only fee I paid in cash to the lender was an appraisal fee. All other fees were added to the new loan.  What closing costs do I amortize?

[DaveF1006]

According to this IRS publication, these are costs that are amortized over the life of the loan. This includes:

• Abstract fees
• Charges for installing utility services
• Legal fees
• Recording fees
• Surveys
• Transfer taxes
• Title insurance
• Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, sales commissions and charges for improvements or repairs).

Certain mortgage points and deductible real estate taxes can be deducted in the current year.

[Carl]

All those fees you mentioned are actually added to the cost basis. Definitely not amortized. If you enter all the data asked for in the Interview process, the program takes care of this for you.

Certain mortgage points and deductible real estate taxes can be deducted in the current year.

While real estate taxes are deductible in the tax year they are paid, for rental property, points are "not" generally deductible the first year. They are amortized and deducted over the life of the loan.

ENTERING POINTS

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.
- Code section is 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