1) is for the interest for the rest of the month that was included in my 1098 from my new mortgage computer.
You can ignore that one then, if you know beyond any doubt that it's already reported on the 1098.
2) is listed as interest on principal balance under payoff charges.
Payoff charges? Sounds like a refi to me. Otherwise, I would expect it to be pre-paid interest that you paid in order to get an overall lower interest rate for the life of the loan. Thats generally referred to as points. Points are amortized and deducted (not depreciated) over the life of the loan. So if that's what it is, here's how you enter it.
Note that points can include more than just pre-paid interest.
ENTERING POINTS
here's how to enter the points in the Assets/Depreciation section.. (does not apply to entering the property itself, or any other property assets.)
- Select the Add and Asset button. (go straight to the asset summary if presented that option)
- Select Intangibles/Other Property, then continue.
- Select Amortizable Intangibles, then continue.
- Describe it as something like "2021 Financing Fees". Then enter the amount, and the closing date of the loan. Then continue.
- Select "purchased new", then "100% business use", enter the closing date of the loan (again), then continue.
- Code section is 163:Loan Fees, then continue.
- Useful Life in Years is the length of the loan, then continue.
- You can "show details" if you like. Then continue, and that does it
