I refianced my residentail rental 4-plex in 2019. Are the points charged in the refinancing deductible on my tax return this year?

Are the points and other closing costs fully deductible on my 2020 tax return?

posted

Not totally in the first year. The points are amortized and deducted over the life of the loan.

If you refinanced with the same lender, then the remaining points to be deducted on the original loan are added to the points on the refi loan and the total is amortized and deducted over hte life of the loan.

If you refinanced with a different lender, then the points remaining to be deducted on the original loan are fully deducted this year (2019 tax year) and the points on the new loan are amortized and deducted over the life of the loan.