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.
Solved! Go to Solution.
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.