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Amortization for Rental Property

Leetpurple
Level 3

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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Leetpurple
Level 3

Thank you so much for your response, which makes perfect sense.  I very much appreciate your direction.

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Accountant-Man
Level 11

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

Thank you so much for your response, which makes perfect sense.  I very much appreciate your direction.

View solution in original post