For a property that is 100% rental, on a refinance, the points and many of the other closing costs have to be amortized over the life of the loan - that part is pretty clear.
The question is where to report these. Do they start out on the amortization section of Form 4562? If so, what code section is entered?
Or do they get added to the mortgage interest on line 12 of the Schedule E, along with a statement every year to explain why it's more than the 1098? Or do they get reported on line 13 as other interest, with a similar statement?
Or do you separate the points from the other closing costs (e.g. recording fees, lender's title insurance, etc. - remember, it's a refinance, not an acquisition), reporting the points on line 12, and the other items either on line 13 as other interest, line 18 as other expenses, or on the 4562, again with suitable statements attached each year?
The question is where to report these. Do they start out on the amortization section of Form 4562? If so, what code section is entered?
Or do they get added to the mortgage interest on line 12 of the Schedule E, along with a statement every year to explain why it's more than the 1098? Or do they get reported on line 13 as other interest, with a similar statement?
Or do you separate the points from the other closing costs (e.g. recording fees, lender's title insurance, etc. - remember, it's a refinance, not an acquisition), reporting the points on line 12, and the other items either on line 13 as other interest, line 18 as other expenses, or on the 4562, again with suitable statements attached each year?
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