imjulier Posted February 9, 2013 Report Share Posted February 9, 2013 Wow-it already feels late in the tax season. Client re-fi's a rental property. If I recall correctly, the expenses associated with re-fi can be claimed in the current year but points are amortized. Sound right? Thanks, Julie Quote Link to comment Share on other sites More sharing options...
Richcpaman Posted February 9, 2013 Report Share Posted February 9, 2013 No, not at all... That would be a personal residence, But not a rental property. They would be added to basis. And if they took any cash out, and did not put it into the property, that portion of interest expense would be non-deductible on the rental property. Rich Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 9, 2013 Report Share Posted February 9, 2013 I disagree. Expenses and points are amortized over the life of the loan. Expenses can't be amortized on a personal property and points are amortized over the life of the loan. He's right about any cash pulled (unless the cash was used to renovate/repair the rental). Quote Link to comment Share on other sites More sharing options...
jainen Posted February 9, 2013 Report Share Posted February 9, 2013 >>Expenses and points are amortized over the life of the loan.<< This is a common treatment, but wrong. Pub 527 explains, "Certain expenses you pay to obtain a mortgage on your rental property cannot be deducted as interest. These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses that are part of your basis in the property." Quote Link to comment Share on other sites More sharing options...
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