Leetpurple
Level 3
04-27-2021
12:36 PM
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My client refinanced a rental property on December 24, 2020 and sold the property on March 24, 2021. I know that amortization of closing costs for a rental property must be amortized over 30 years, but I am trying to find out if we can take the entire amount in 2020 or split it between 2020 and 2021 instead of over 30 years? I've researched as much as I can and have not found an answer. Thanks in advance for any help.
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Accountant-Man
Level 13
04-27-2021
01:01 PM
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Since the refi costs were paid in 2020, you can amortize for 7 days in 2020.
You can write off the balance in 2021 since the property was sold in 2021.
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Leetpurple
Level 3
04-29-2021
11:07 AM
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Thank you so much for your response, which makes perfect sense. I very much appreciate your direction.
