topic Same Lender; Rental Property Refinance in Get your taxes done using TurboTax

Same Lender; Rental Property Refinance

mr O_O — Sun, 07 Mar 2021 05:53:22 GMT

If you refinanced your rental property with the same lender, how would you go about deducting the points paid on the mortgage, the closing costs, and the fees from the old loan over the life of the new loan in TurboTax?

Re: Same Lender; Rental Property Refinance

AmyC — Thu, 11 Mar 2021 03:13:30 GMT

The fees can be deducted over the life of the new mortgage and are considered intangible. This follows code section 163. Follow these steps:

Return to your rental property
Edit/Update
Scroll down to Assets/Depreciation
Edit/Update
Do you want to go directly to your asset summary?
Yes, continue
Click the blue Add an Asset button
Select Intangibles, Other Property, continue
Tell us more, categorize as Amortizable intangible, continue
Enter description and expenses, continue
I purchased it new
Enter the date of the refinance, continue
Select a code section, 163, continue
Recovery period, enter the number of years of the new mortgage, continue
Continue, continue

Re: Same Lender; Rental Property Refinance

mr O_O — Thu, 11 Mar 2021 03:56:13 GMT

What do you do with the old refinance fees in Assets/Depreciation for same lender; rental property refinance?

Re: Same Lender; Rental Property Refinance

KrisD15 — Thu, 11 Mar 2021 04:34:48 GMT

If you were spreading them over the life of the loan, you would take the remaining amount from the loan that was paid off in the year it was refinanced.