where should i report lender charges for rental property?

[stanleyli]

I believe the lender broker fee should be added to the cost basis of my rental purchased in 2021. however turbotax only asked about the purchase price as cost basis and then 5 types of expenses, e.g title search fee, at next screen. I couldn't find where I can enter this fee.

Should I directly add these lender charges on purchase price in turbotax?

[Vanessa A]

No, the Mortgage broker fee would not be added to the purchase price. It would be included in the loan cost/interest expense and amortized over the life of the loan, not the life of the property.  To enter your broker fees click the following:

• Federal
• Income and Expenses
• Add Expense or Asset
• Improvements, Furnishings and Other Assets
• Start next to Improvements, Furnishings and Other Assets
• Answer yes or no when asked if the asset was $2,500 or less
• Continue through and click Intangibles, Other Property
• Amortizable Intangibles
• Enter the description, the amount and date of purchase
• Continue through the questions

[Carl · Accepted solution]

ENTERING POINTS

here's how to enter the points in the Assets/Depreciation section.. (does not apply to entering the property itself, or any other property assets.)
- Select the Add and Asset button. (go straight to the asset summary if presented that option)
- Select Intangibles/Other Property, then continue.
- Select Amortizable Intangibles, then continue.
- Describe it as something like "2021 Financing Fees".  Then enter the amount, and the closing date of the loan. Then continue.
- Select "purchased new", then "100% business use", enter the closing date of the loan (again), then continue.
- Code section is 163:Loan Fees, then continue.
- Useful LIfe in Years is the length of the loan, then continue.
- You can "show details" if you like. Then continue, and that does it