Refinanced on a multi-family (Half home/half investment)

[TheMassGuy]

Hello,

I understand that when refinancing the main home, you can't deduct the mortgage points bought all in the same year but throughout the whole life of the loan. 

However, because half the unit is a 50/50 split investment/main home; When I refinanced, am I able to deduct/expense 50% of the mortgage points along with half the closing cost in the same year for the investment portion, or does that have to be spread among the new term of the loan too?

I know the only portion of the main home that cant be deducted is the additional cost that add to the basis like appraisal etc.

Thanks in Advance

[ColeenD3]

What do you mean by investment? Is it rented out? Is it just empty?

Closing costs are not deductible. They are added to the basis of the property.

[TheMassGuy]

Sorry Coleen! I should have been more specific!

I own a duplex, I live in one unit and currently renting out the other unit

[Mike9241]

However, because half the unit is a 50/50 split investment/main home; When I refinanced, am I able to deduct/expense 50% of the mortgage points along with half the closing cost in the same year for the investment portion, or does that have to be spread among the new term of the loan too?

closing costs are not deductible but add to basis.

even on an original mortgage, the points on the investment portion must be amortized over the life on the loan. any unamortized balance can be written off on  a refi. 

for the personal portion, any unamortized points can be written off on refi provide the refi is not with the same lender. then the unamortized balance on the old must be amortized over the life of the refi.