My understanding is that the costs associated with obtaining the old mortgage should no longer be amortized (now that the life of that loan is over) and should be expensed in the year of the refinance.
I can not figure out where in TurboTax to accomplish this expensing of a previously amortized asset. I bopped around and attempted to answer things the right ways and now it's showing as sale of business asset for a loss. Is this the right place for it?
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Before the explanation about how to get the right figures in the right places, it's important to note that you must not only have a new refinanced loan, but it must NOT be with the same lender. If you should have the same lender, then you must add these points to the remaining old points and create a new asset for amortization using the life of the loan as the time period to recover your cost.
If you have an asset set up for the points that had to be amortized you should show the asset was removed/retired from service, and the date, but not a sale. Once you enter a date the asset was retired, you should select 'Mid-Month' as the convention, if asked. Do NOT enter sales proceeds or sales expense.
Use the amount that is shown as the expense for the current year, add that to the amortization already used on this asset and subtract that result from the total amount of amortized points you started with. The result should be added as an expense using the 'Other Interest' expense category.
See the images below.
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