Hello! I tried to enter points on rental but it is not calculating.
Here's what I did:
Add asset
Amortizable intangibles
Described asset - added cost and closing date of loan
Selected purchased new asset
Clicked used for 100% of business and entered closing date of loan
Selected code section 163:Loan fees
Entered in useful life of 30 years
Asked if I wanted to take special depreciation allowance (clicked no because I don't think it applies)
Calculates $0 for the amortization
Can you please let me know what I did wrong?
When you refinance with the same lender, you are required to amortize the points. Otherwise, the points are deductible for purchase and refinance.
I am following your steps and can only tell one mistake so far (rental is 27.5 years for mortgage), here are mine:
You must mark purchased as well as enter your date
Sec 163 loan fees is correct
depreciation allowance, no is good and then asset summary
When you refinance with the same lender, you are required to amortize the points. Otherwise, the points are deductible for purchase and refinance.
I am following your steps and can only tell one mistake so far (rental is 27.5 years for mortgage), here are mine:
You must mark purchased as well as enter your date
Sec 163 loan fees is correct
depreciation allowance, no is good and then asset summary
Thank you for the detailed reply! I closed out the program, deleted that asset I was working on, and created a new asset and all worked! I wonder if I somehow messed something up when I went to look at the individual forms. Thanks again!