Discussion:Amortization of Closing Costs
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Discussion Forum Index --> Basic Tax Questions --> Amortization of Closing Costs
Discussion Forum Index --> Tax Questions --> Amortization of Closing Costs
Taxlady1017 (talk|edits) said: | 10 June 2008 |
| I am amortizing closing costs for a refinanced mortgage over the life of the loan (30) years.
What is the IRS Code under which intangible asset is amortized? It doesn't seem to fit section 197 Thanks for your help | |
| June 10, 2008 | |
| Code Sect. 461 for points, I use for all loan fees incl. points. | |
Taxlady1017 (talk|edits) said: | 11 June 2008 |
| Thanks so much, I couldn't find it. HAve a great evening. | |
| June 11, 2008 | |
| Belle,
Can you please clarify. I'm assuming this only applies to closing costs for a refi, and that you add closing costs for purchase and sale to the basis when selling. The New Tax Guy | |
| 11 June 2008 | |
| Loan costs are a separately amortized asset over the life of the loan. They are not added to the basis of the asset being purchased. | |
| 12 June 2008 | |
| I presume we are discussing a refinance on a taxpayers personal residence and not a rental. Loan fees ,other than loan origination fee or points themselves , are a personal expense and cannot be amortized over the life of the loan. Examples include appraisal fees, processing charges for the mortgage note ,notary fees which are non deductible. | |
RoyDaleOne (talk|edits) said: | 12 June 2008 |
| Over the life of the loan.
REV. RUL. 87-22 | |
| June 12, 2008 | |
| I just answered the specific OP question of 'what code section'. Didn't analyze whether the situation justified the amortization or not. | |
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