Hello turbotax community,
I refinanced my rental property in 2019, and Turbo Tax created a "Refinancing fees" asset that amortizes in 30 years. That's fine.
But I have a previous similar "asset", from a previous refinancing that I did few years ago. What should I do with it? Continue amortizing it for the remaining 25 (out of 30 total) years? Or "dispose" the asset, since I no-longer have it? That mortgage was fully paid off by the new one.
If you refinanced with the same lender, then the remaining amortized costs not yet deducted on the old mortgage are added to the amortized cost of the new mortgage and amortization starts anew over the life of the new loan.
If you refinanced with a different lender then the remaining amortized costs on the old loan are fully deductible. Then amortized costs on the new loan are entered as such and deducted over the life of the new loan.
After adding the remaining amortized cost to the new asset which you entered in the assets/depreciation section, simply delete the old (original entry) from the assets/depreciation list.
What I tried was to put the refi date as the Date Sold - Line 20 under Dispositions.
The system gave an allocated amount of Amortization for the year, and the Asset Life History shows that there will be no more amortization after this year, and there is a "S" in the Depreciation Report, Code Column.
I then took the balance not amortized and the new refi amounts and created a new asset page.