All Forum Posts by: Becky Watkins

I'm not even sure my new mortgage has points. Everything I read says that a point is 1% of the loan amount. The statement says ".125% of Loan Amount (Points)" and the amount next to it is .125%, not 1%. So I think it might be something else, and not amortizable?

Not quite yet, but I'll ask a different question here. In reviewing my HUD, it looks like nothing the following closing costs were neither included in my property's basis nor deducted. Does that sound accurate?

• origination charge
• appraisal fee
• credit report
• flood certification
• debt monitoring

said to deduct the old loan costs, and doesn't make sense that I would be deducting them while they are being depreciated. So do I only deduct points (none, in my case), but not all costs (since the title insurance and recording charge are included in the property basis)?

My new loan has points, so I'll amortize those - is it only the rental portion, as with the depreciation of the building?

What do I do with the rest of the loan costs?

• appraisal, credit report, flood certification, tax registration
• Title insurance & escrow fee 
• recording fees

Okay, that is helpful. I'll have to poke around the H&R Block software to figure out where I'm supposed t report amortization.

Regarding the deduction, do I take what the loan costs were, subtract what has already been depreciated in prior years, and then deduct it...where? Is it on the Schedule E as "other expense"? Is it also reportable on Schedule A? Or do I need to save that for when I move out one day and convert my unit to rental?

I have a question regarding depreciating a refinance!

I refinanced my owner-occupied multifamily rental property last year and now I'm struggling on exactly how to report the closing costs. I have tried researching previous posts and other sources, but I haven't found anything that is directly related (Im not asking about the personal portion, a cash out, etc).

So one thing says to amortize the points, but that's just a small portion. Another thing says to amortize anything that had to do with processing the loan. Another thing said that credit report and appraisal fee doesn't count. 

Also, would it be its own line that starts depreciating as of the date of the refinance (settlement or disbursement date?) or do I add it to the original basis? But what about the years of depreciation that already passed?

And then would the land basis be based on the original purchase date or what the ratio is at the time of the new loan?

Thanks so much. Every year, depreciation is the bane of my existence. I thought I had it under control but then I had to go and refinance. ;)

That's for expenses in 2016, right? Does not apply to the 2015 tax return filed in 2016? 

I'm in Seattle and north enough that are house prices are okay and we have decent parking, but I bet we'll see growth in the next few years, especially when they extend the light rail in 5 years.

Last year my tax preparer did an 80/20 instead of going by assessed values. They said they do that for everyone. Now I'm concerned I'm over deducting. But I'm also concerned what happens when my basis drastically drops on this return. Also worried about  depreciation being recaptured at a different rate them I had been taking when/if I sell one day.

Does that seem low? It's a mutilevel multifamily with a small yard. I went to the King County tax assessor website and the percentage of Appraised Land Value of Appraised Total was 38%. Other people I've seen discussing it seem to get at least 80% for their property.

@Steven Hamilton II tag fell off in my previous post.