1939051
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Close icon
Do you have a TurboTax Online account?

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

I refinanced a rental property and have mortgage points that I can add as an asset, but what do I do with the points asset from the original loan?

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?
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.

3 Replies
ColeenD3
Expert Alumni

I refinanced a rental property and have mortgage points that I can add as an asset, but what do I do with the points asset from the original loan?

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.

  • Select Edit. Continue through page descriptions of prior fees. Check box, the item was sold, retired or disposed of and the date of your new fees as the date sold.
  • Continue to Confirm your Prior Amortization page.
  • Select Yes on the Special Handling Required page, because the last option is true.
  • Continue to next page and select radio button Transfer these fees for me to Other Expenses. View Sch. E (page 1) in forms mode to verify remaining depreciation and transfer to Other Expenses.

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.

I refinanced a rental property and have mortgage points that I can add as an asset, but what do I do with the points asset from the original loan?

@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! 

AmyC
Expert Alumni

I refinanced a rental property and have mortgage points that I can add as an asset, but what do I do with the points asset from the original loan?

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:

 

  1. look on the left sidebar, 
  2. select tools
  3. select print center
  4. select pay now
  5. Select Print, save or preview this year's return
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question