I refinanced a rental property, where do I list the costs?

rodeothor — Sat, 01 Jun 2019 20:21:33 GMT

The IRS lets you deduct ordinary and necessary expenses r...

DanielG — Sat, 01 Jun 2019 20:21:34 GMT

The IRS lets you deduct ordinary and necessary expenses required to manage, conserve, or maintain property that you rent to others. You're allowed to deduct these expenses if your property is vacant, as long as you're trying to rent it.

Also, expenses must be deducted in the year they are paid. For example, if a pest-control company serviced your rental in 2018 but you didn't pay them until early 2019, you'd deduct that expense on your 2019 tax return.

Deductible expenses include, but are not limited to:

Cleaning and cleaning supplies
Maintenance and related supplies
Repairs
Utilities
Insurance
Travel to and from the property
Management fees
Legal and professional fees
Commissions
Taxes and tax return preparation
Lease cancellation costs
Advertising
Real estate taxes
Mortgage interest
- Refinance fees and mortgage points are entered in the Assets/Depreciation section instead of the Expensessection. The IRS considers these "amortizable intangibles" which means they must be depreciated, not expensed.

Related Information:

topic I refinanced a rental property, where do I list the costs? in Investors & landlords

I refinanced a rental property, where do I list the costs?

The IRS lets you deduct ordinary and necessary expenses r...