Where do I deduct points and loan origination fees for rental property purchase?

[HelenaC]

The costs associated with obtaining a mortgage on rental property are amortized (spread out) over the life of the loan.

• For example, if it cost you $3,000 to refinance your 30-year mortgage, you'd be able to deduct $100 per year for the next 30 years. See What kinds of rental property expenses can I deduct?

Note: Although it doesn't seem logical, refinance fees and mortgage points are also entered in the Assets/Depreciation section. The IRS considers these amortizable intangibles and accounting rules dictate that those are to be depreciated instead of deducted as an expense.

To enter your rental points and closing costs, simply follow the directions to enter your rental income and expenses. At some point you'll come across the Rental Summary screen. Select Start next to Asset/Depreciation and follow the onscreen instructions. We'll figure out which depreciation method works best in your favor.

[TSKK27]

When I add my rental refinance cost of $3,155 over 15 years, it calculates a $35 depreciation.  I am choosing what TurboTax recommends (intangible assets, 163 loan fees), but shouldn't the result be $3155/15 = $210 per year?  Any suggestions?

[Critter-3]

Unless you closed on the property and put it in service on 1/1/20 then you do not get the full year's deduction ... you only get a portion based on the month it was placed in service.