In 2014 I refinanced mortgage on rental property and amortized closing costs. In 2016 I refinanced mortgage on same rental property again. Don't know how to treat remaining 2014 closing costs that haven't been amortized yet.
the unamortized balance is deducted in the year of refinancing
I have the same issue. How do I enter the remaining unamortized portion of the first loan on the asset entry for transfer to 4797. If I enter it as 'sold' intangible for value of zero$, Turbo Tax gives me an error and says cannot do this for intangibles, i.e. not 1245 property. See Tax Help for specific instructions. Where are such instructions?
I have this issue where I refinanced four (4) different times in 2011, 2017, 2019 and 2020. I was told that I should "close out" unamortized rental balance for 2011 and 2017. I need to enter 2019's closing costs and "close it out" in 2020. The new loan with points will start in 2020 with an new amortization schedule for the rental closing costs/points amortizing over the 30-year life of the loan. This property has two rental addresses and one private residence.
A word of caution. IF I REMEMBER CORRECTLY, in cases where the new lender is the same as the former lender, the process/rules are different. I don't recall the details, but if that is your case, you might want to research it a bit deeper. Sorry, I can't be more specific.
When a mortgage loan is refinanced and it is with a different lender, then any remaining points that have not been deducted under the first lender can be deducted in the year of refinance.
If a mortgage loan is refinanced with the same lender, any remaining points must be added to the points on the new loan if applicable, then divided by the loan term to determine the monthly amount you can deduct. If there is a full year of mortgage payments then it would be 12 months deduction as points. For the first year it would be the number of months remaining in the year beginning with the first month payments begin and ending in December of that year.