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Updated almost 8 years ago on . Most recent reply presented by

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96
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Paul C.
  • Rental Property Investor
  • Henderson, NV
33
Votes |
96
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Deducting Origination Costs on Line of Credit

Paul C.
  • Rental Property Investor
  • Henderson, NV
Posted

Does anyone know how you would deduct the costs of obtaining a line of credit?  For example, let's say I get a line of credit and I pay the following fees:

Attorney Fees: $500

Origination Fees: $750

Title Fees: $1,500

Could any of these fees be either deducted or capitalized when they're not associated with a specific rental property?  If so, what would be the proper way to do it?

Thanks in advance.

Most Popular Reply

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5,271
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
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5,271
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

What are the funds used for? Or is a continuous line of credit?

Amortized out over the length of the line of credit. Or deducted over the time frame of the items purchased.  For example if you purchase a property and it is depreciated over 27.5 years. You will amortize that cost over that term with the property.

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
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