Turbotax tells me that my closing costs of $1500 can be fully deducted over 30 years. In the assets summary, it shows MACRS Convention is NA and no Depreciation Method is listed. Why does it say that I can only depreciate $5 per year? Shouldn't it be $50 per year ($1500/30=$50)?
There are different items are included n closing cost, it is why the calculation might be different.
Items below are not tax deductible but may increase the cost basis of your home which may benefit you in the event of sale.
Deductible expenses for a new loan or refinance: mortgage interest paid (including origination fee or "points"), real estate taxes, and private mortgage insurance.
Some of the expenses associated with the closing cost cannot either be deducted nor depreciated, they should be amortized within 5 years instead.
This is a rental property so all costs should be ded (https://turbotax.intuit.com/tax-tips/home-ownership/mortgage-refinance-tax-deductions/L2fzA7hg5). Turbotax also indicates that the Cost/Cost basis is $1500. If there was something that was not depreciable, it seems it would reduce the $1500 amount in the asset summary.
You are correct, the deduction is not correct due to the entries. Follow the steps below to add this asset for the appropriate outcome.
Notice the end result is what you want to see, the date the refinance began in this example is 01/05/2020. The date the refinance began will alter the deduction if it was not a full year.