turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

How to handle mortgage broker fee and loan fees for rental property we purchased in 2023

This is for a ten year loan.  This is not a refinance.  It is for the initial purchase.  This is what I have done.  Is this correct?

- I expensed the loan fee because it was less than $200

- I amortized the mortgage broker fee over ten years because it was greater than $200

 

Thanks for your assistance and time !

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
JotikaT2
Employee Tax Expert

How to handle mortgage broker fee and loan fees for rental property we purchased in 2023

Yes, you have treated both items correctly.  

 

Loan fees would be expensed as they are not considered part of the capital costs. 

Mortgage broker fees are considered to be part of your basis in the rental property.

 

Please see the following excerpt from this IRS publication for more details.

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies