topic Amortization of Mortgage Loan Fees for Rental Property in Get your taxes done using TurboTax

Amortization of Mortgage Loan Fees for Rental Property

Bearcat252 — Mon, 09 Mar 2026 08:30:52 GMT

My accountant was inaccurately amortizing my mortgage origination fees over 30 years for my rental property. I have a 15-year mortgage. Thus, the amount amortized to date is very low. However, when I change the "years to fully depreciate" to 15 years, the "estimated expense" for 2021 is such a small amount that it would take over 10 years to fully amortize. I only have a couple more years before I reach the 15-year mark. How can I override this so that I am getting the appropriate $ amount of annual amortization?

Re: Amortization of Mortgage Loan Fees for Rental Property

MaryK4 — Thu, 10 Mar 2022 01:04:01 GMT

You have to complete a Form3115. Form 3115, Change in Accounting Method, is used to correct most other depreciation errors, including the omission of depreciation. If you forget to take depreciation on an asset, the IRS treats this as the adoption of an incorrect method of accounting, which may only be corrected by filing Form 3115. You only need to complete Schedule E.

See About Form 3115, Application for Change in Accounting Method