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Writing off remaining loan costs - 1065

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#1 LouD



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Posted 09 September 2009 - 01:40 PM

1065 return that sold a commercial rental building in 2008. Loan costs being amortized since building purchase in 2004 with $25k left to amortize when building was sold. How do I treat the write-off of the remaining loan costs?

Should I write it off directly on the Form 8825 rental activity or does it get written off thru the Form 4797 and can I use the disposition function in the asset manager?

#2 kcjenkins


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Posted 09 September 2009 - 06:36 PM

Yes, you can use the disposition function, and I'd certainly do it that way. It effectively adjusts the basis, and it all goes to the 4797. Resist the temptation to put it as an operating expense on the 8825.

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