Unable to enter 2nd refinance information for Rental Property. Turbo Tax does not take me to - Did you refinance this property ? question

[syed_b_huq]

I believe I have found a Bug in Turbo Tax Premier:

1) IF you own an investment property (Rental property) 100%, then Turbo Tax allows you to enter Refinance closing cost information.

2) IF you own some percentage of an investment property(Rental property), let's say, 50%, then Turbo Tax WILL NOT allow you to enter Refinance closing cost information.

Why is that ?

[RobertB4444]

This is not a known issue and I can't get it to repeat.  Please clarify, it's not letting you enter the refinance information as an asset?  Because refinance costs are not deductible expenses for a rental property.

[syed_b_huq]

The issue is not about if it is deductible or not. Turbo Tax asks you "Did you refinance this property" and if you answer YES, you are allowed to plug all refinance cost. BUT, it will only ask for the 1st property. I have refinanced multiple properties and it does not prompt me for the 2nd property.

Why does it not prompt me with the Refinance question for the 2nd property ?

[MarilynG1]

Are you entering in the Mortgage Interest section?

If you have multiple 1098's (original and refinance) click this link for steps on how to enter  

Multiple 1098s from Mortgage Refinance.

[syed_b_huq]

This has nothing to do with filling out 1098 info.

There is a BUG in Turbo Tax and I have found it.

[Critter-3]

@syed_b_huq 

If these are for multiple rental properties then you will enter it as an asset in each separate rental section ... you cannot enter all of them under one rental property.  If you refinanced more than once in a tax year for the same property then only the last one is entered as an asset ... the first refinance is entered as an expense. 

[syed_b_huq]

These are multiple rental properties. Refinanced once in 2021 (not multiple time).

I am not entering all under one.

In order to enter it as asset, Turbo Tax needs to ask the question: Did you refinance this property ?

Turbo Tax does not ask this question for the 2nd property. It only asks for the first re-financed rental property.

In which case, this is a BUG is Turbo tax.

[Critter-3]

Contact TurboTax support and speak directly with a TurboTax support agent concerning this TurboTax support situation.

See this FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number

[syed_b_huq]

Thanks for the advice. I did call them. They accessed my PC with screen sharing, viewed my file/screen many times, they saw the issue I have mentioned in this thread and their recommendation was:

"Delete the file and start all over".

Quite unbelievable ! I guess they are unwilling to accept that a BUG has been found.

[Critter-3]

I had no issue at all entering that into multiple rentals at all in my test return ... so it must be your system.  If you are using the online program clear your cookies and/or switch browsers.

[syed_b_huq]

I think I have found the issue. BTW, this is not an online version. I am using the Turbo Tax Premier CD version.

# - Rental Property #1 was re-financed and I was 100% owner, so Turbo Tax allowed me with a prompt to enter all closing cost.

# - Rental Property #2 was re-financed and I was 50% owner and Turbo Tax DOES NOT allow with any prompt to enter all closing cost.

I am not sure if this is a Turbo Tax issue that for a partial ownership of a Rental Property, you cannot enter re-finance closing cost OR is this a Tax Rule that does not allow you to claim closing cost of a re-fi for a property that you do not own 100% (which Turbo Tax is following).

I did not pay points.

[Critter-3]

Ok ... so if you are not filing a partnership return for the co owned property I highly suggest you indicate you own 100% of your 50% of the property and enter only your portion of the expenses instead of letting the computer do it for you ... this is a weakness of the program not a "bug" since most co owned  properties are filed first using a form 1065 and then only the K-1 form is entered in the TT system.