How do I get TurboTax to calculate the unused points / mortgage expenses on an investment property when refinancing the mortgage?

[chris_vandoren]

When refinancing a mortgage on an investment rental property does turbotax calculate the deduction for the remaining unclaimed points / expenses?  It said it was going to go do that but nothing seemed to happen.  

After entering the refinance data TT asked if you have prior refinance fees (lets take care of it now).  But there is an apparent bug in that it doesn't do anything, just moves on to ask if there are any Miscellaneous Expenses.

I would rather not manually research / calculate the past 10 years of deductions if TT has the data and can do it.  

Thanks.

[chris_vandoren · Accepted solution]

I have answered my own question.  Turbotax does not do this although all of the data is there

Major Bug in my opinion - though at least they warn you about it if you read the fine print. on the refinance screen.  If I didn't notice this and persevere in figuring it out I would have paid an extra $1,900 in taxes.

To take care of this:

Go into Business, Business Income & Expense, Update Rental Properties, Edit the property in question.

- Update Assets / Depreciation
- Continue to Asset Summary
- Edit the refinance Fees asset in question
- Write down the Original cost and prior depreciation
- Press Continue on next screen
- Answer Yes to disposed of, and answer questions.
- DO NOT enter 0 as a sales price, leave blank. (a 0 will actually get you the correct tax calculations put Quicken flags it later as an error)
- note the calculated depreciation for this (partial) year
- TT will next take you to the miscellaneous expenses screen
- enter unused depreciation of retired asset "asset name"
- for the amount of the expense subtract prior depreciation and this years depreciation from the original cost
- complain to TurboTax that their software doesn't do this easy process calculation for you and if you missed it you would have missed out on a serious deduction.