Entering points for a rental property purchase

[taxesaretaxing123]

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?

[AmyC · Accepted solution]

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

[taxesaretaxing123]

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!

[KrisD15]

The program wouldn't have asked about Special Depreciation for points, so chances are it was in the wrong place the first time. 

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