Rental Refinance Fees not added to depreciation schedule

[michaelkocsis95]

I went through the questionnaire where I entered in the refinance fees for my rental property. When I view the tax return worksheets, the "Rental refinance worksheet" is completed with the information, but these expenses don't show up in the depreciation schedule or as an asset in "Asset Summary". Do I have to manually enter the refinance expenses as an asset?  

[MarilynG1]

Yes, the Refinance Fees for your Rental Property would be entered as an Asset.

If TurboTax did not create the asset for you, click this link for instructions on Entering Rental Property Refi Costs as an Asset. 

[CharlesRP]

Hi MarilynG, just to clarify, are the assets separated? Meaning those that cannot be added to the basis like broker fees, should be instead amortized as a septarate asset, while other costs that get added to the cost basis would be added as new asset to be depreciated. Thus, some settlement costs are amortized (not adding to cost basis) while others are depreciated (added to cost basis). Of course, this excludes certain costs (real estate taxes, etc.,) which must be expensed.

[DianeW777]

Yes.  The costs for obtaining a refinanced loan become an individual asset for your rental activity, because it's a different year and they must begin depreciation/amortization in the year they occurred. 

Also, if you should refinance again, these expenses remaining from the first refinanced loan, that have not been fully amortized, will be deductible in that year. 

@CharlesRP

[skycamper]

I have this same exact problem.  I refinanced my rental home in 2016 and have costs associated with that.   Then I refinanced again in Oct 2021.   I never deducted anything or thought of it until doing my 2021 taxes and TT asked me to basically to get rid of the amortized costs from the old loan.  I wish I had screen shot what it said but I didnt.     

I tried making in an asset to expenses those costs to get the entire deduction but Im not sure where that goes.  How do I do that without amortizing them at this point?