I have a rental property. I refinanced it in March 2021, I paid $3003 loan fees (loan origination, appraisal, escrow fee, etc), and got $5003 lender credit.
I later refinanced in November 2021, I paid $3,579. loan fees (loan origination, appraisal, escrow fee, etc), and got $5011 lender credit.
For the first refinance, I input it in the "Assets &Depreciation" section.
* I chose "Intangibles, Other property",
* then chose "Amortizable Intangibles",
* then chose "I purchased this asset", and also "The item was sold, retired, ...",
* choose code section "163: Loan fees", set "Useful life" to 30 years.
* "Special handling required?" I chose Yes
When back to the "Assets & Depreciation" screen, It then give $70 deduction.
Is this right? The loan fee was supposed to be amortized over 30 years but since I disposed of it, it should deduct everything correct?
For the second refinance, it's easy, just followed TT, it will amortize the loan fees.
Based on my reading in the forum, we just lender credits, it won't be used anywhere. My question is, shouldn't Lender credit be an income? in the case of my first refi, I clearly got $2000 income which I won't report anywhere. anyway I just ignore it, pretend I didn't see it. is this the right way?
