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Level 1

I paid points in purchasing my rental property, where do I enter it? TT only has spot for my to enter points if I refinanced my place, but not for purchasing. Thanks.

 
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Employee Tax Expert

I paid points in purchasing my rental property, where do I enter it? TT only has spot for my to enter points if I refinanced my place, but not for purchasing. Thanks.

  •  Scroll down to Rentals, Royalties, and Farm and click Show more.
  •  Click Start or Revisit by Rental Properties and Royalties (Sch E).

Continue through till you get to your Rental and Royalty Summary.  Choose the property you'd like to add the points to.

 

Click Start or Update by Assets/Depreciation.  Continue through till you get to Your Property Assets.  Click + Add an Asset.

 

Then, follow these instructions, by TurboTaxPaulaM:

Enter rental points as an Intangible Asset in the Asset/Depreciation section of your rental property. Enter the Points as a description, costs and the date. Enter the asst as 'new', then select code 163 from the drop down. 

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2 Replies
Employee Tax Expert

I paid points in purchasing my rental property, where do I enter it? TT only has spot for my to enter points if I refinanced my place, but not for purchasing. Thanks.

  •  Scroll down to Rentals, Royalties, and Farm and click Show more.
  •  Click Start or Revisit by Rental Properties and Royalties (Sch E).

Continue through till you get to your Rental and Royalty Summary.  Choose the property you'd like to add the points to.

 

Click Start or Update by Assets/Depreciation.  Continue through till you get to Your Property Assets.  Click + Add an Asset.

 

Then, follow these instructions, by TurboTaxPaulaM:

Enter rental points as an Intangible Asset in the Asset/Depreciation section of your rental property. Enter the Points as a description, costs and the date. Enter the asst as 'new', then select code 163 from the drop down. 

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

View solution in original post

Level 15

I paid points in purchasing my rental property, where do I enter it? TT only has spot for my to enter points if I refinanced my place, but not for purchasing. Thanks.

Points are deductible. They get amortized (not capitalized) and deducted (not depreciated) over the life of the loan.

They're entered in the assets section as "other" asset type. Code section is 163 and the lifespan will be whatever the term of the loan is. Generally 15 or 30 years.

 

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