Question

Where do i enter a new loan and points i paid in buying a new rental property in 2018? Entering the data in TT it asked only for recording fees and title insurance.

Forum|Forum|6 years ago
June 6, 2019
1 reply
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TurboTax Premier Online

The mortgage interest will be entered in the Expenses section for your rental property.

The points will be entered in the Assets/Depreciation section.

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B

BayAreaAl

I'm no expert but this is what I did...

With TT Premier 2019, I needed to go to the respective property's assets list (forms view), and enter a new asset as "Loan Points". I couldn't find how to get the interview mechanism to ask for the points paid for the loan.

In this cast the "COST" of the asset is just the points paid.

PatriciaV

Turbotax is complaing that on Schedule E - Eligible Sec 179 property should not be checked Yes. Only Tangible personal property is eligible for the Section 179 deduction.

This is what TT shows

Check This Entry

Schedule E Worksheet -- Asset Entry Worksheet (Mortgage Loan Points): Eligible Sec 179 property should not be checked YES. Only tangible personal property is eligible for the Section 179 deduction.

Option 1: No entry

Option 2: Eligible Sec 179, Yes

Option 3: Eligible Sec 179, No

And on Schedule E line 42 YES is selected

It appears your mortgage loan points were entered as a depreciable asset and not as an intangible. You need to go to the Asset/Depreciation topic, delete the asset entry you made, and re-enter the loan fees in the correct category.

Mortgage points are categorized by the IRS as an "Amortizable Intangible". You will enter code section 163: Loan Fees as the method to amortize these expenses. These fees are spread over the life of the mortgage (ex: 30 years).

@sdarora

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