tax on a refi

[LuAnn Vigen]

I am thinking about refinancing three of my rental properties (sfr). will I be able to deduct the interest on my taxes for the new refi's or does that only work on the first morgage?

[Nathaniel Busch]

Originally posted by @LuAnn Vigen:

I am thinking about refinancing three of my rental properties (sfr). will I be able to deduct the interest on my taxes for the new refi's or does that only work on the first morgage?

LuAnn, 

Also be very careful to account for the closing costs and to amortize them as an intangible asset over the life of the loan. If/when you refinance in the future, you can then take a lump sum deduction for the closing costs not yet written off as of that date. 

Don't include escrow deposits in the amount of closing costs you are writing off (as those aren't costs, just deposits). 

This is an often missed deduction by real estate investors. 

Nathaniel Busch, CPA