The question kind of says it all. I have rental property that I purchased in 2013 and I'm still depreciating the points from the original loan as an asset. I refinanced the property last year so now have a points asset - what do I do about the old one? Do I just say it was taken out of service or do I just delete it?
Please see this answer from pattif12:
Re: How to write off old closing costs after a refi for rental property?
To remove and list prior amortization as an expense.
Go to Your Property Assets page- Along with your rental, you should see your original refinancing fees and the depreciation amount.
End result: Current depreciation amount for old loan. Remaining unamortized balance to be transferred to other expense line. Your old fees may still show on the asset page if you still have some depreciation for the current year, but it will not be listed there in the next year
Add your New Loan Fees as a new asset. On the Your Property Assets page, click Add an Asset link to enter data for new loan fees.
@ColeenD3 The last question you referenced as a yes is about rental property or home offices within personal property is how I read that. (I am in 2022 Premier desktop) I don't see where the original poster said the rental property is within a personal home. But even so when I click yes it does not ask about entering the unrealized points in other expenses. It just tells me what the deduction for the current year is. And I did indicate that I disposed of it by entering the new loan date. This area of Turbotax needs help!
Rules change. Same lender? Refinanced and pulled out money? See Pub 527 for the rules when a mortgage ends.
@pnored You will need to verify what you are eligible to claim and view your return to be sure it shows.
View/Print:
Desktop: switch to Forms Mode
Online: You may need to go ahead and pay for the return so you can see the actual forms to find the issue. To do this: