Amortization refinance costs - IRC section for form 4562

Ian Pilcher

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Nov 15, 2013, 4:35:42 PM11/15/13

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When amortizing non-interest costs related to the refinance (not
purchase) of a rental property, what is the proper "Code section" for
form 4562, line 42, column (d)?

Thanks!

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Alan

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Nov 15, 2013, 7:37:05 PM11/15/13

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On 11/15/13 2:35 PM, Ian Pilcher wrote:
> When amortizing non-interest costs related to the refinance (not
> purchase) of a rental property, what is the proper "Code section" for
> form 4562, line 42, column (d)?
>
> Thanks!
>

See the form 4562 instructions for Line 42 column a where the IRS gives
you the code sections for the category being amortized.
http://www.irs.gov/pub/irs-pdf/i4562.pdf

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Alan
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Alan

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Nov 15, 2013, 7:46:30 PM11/15/13

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On 11/15/13 5:37 PM, Alan wrote:
> On 11/15/13 2:35 PM, Ian Pilcher wrote:
>> When amortizing non-interest costs related to the refinance (not
>> purchase) of a rental property, what is the proper "Code section" for
>> form 4562, line 42, column (d)?
>>
>> Thanks!
>>
> See the form 4562 instructions for Line 42 column a where the IRS gives
> you the code sections for the category being amortized.
> http://www.irs.gov/pub/irs-pdf/i4562.pdf
>

I just realized why you asked this question......

Use Section 167.

Ian Pilcher

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Nov 17, 2013, 1:58:30 PM11/17/13

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On 11/15/2013 06:46 PM, Alan wrote:
> I just realized why you asked this question......

Try Googling for an answer. It gets worse.

> Use Section 167.

Depreciation? After browsing through the various IRC sections, I was
actually leaning toward 162(a). AFAICT, that is the section that makes
non-interest financing expenses deductible in the first place. FWIW,
this seems to support that reasoning:

https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=25+Golden+Gate+U.L.+Rev.+151&srctype=smi&srcid=3B15&key=df8bcdc48518b0a56748ad53e69703ff

Really, really irritating that the IRS doesn't provide a clear answer
to what appears to be a very frequently asked question.

--
========================================================================
Ian Pilcher arequ...@gmail.com
Sent from the cloud -- where it's already tomorrow
========================================================================

Alan

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Nov 17, 2013, 3:01:12 PM11/17/13

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On 11/17/13 11:58 AM, Ian Pilcher wrote:
> On 11/15/2013 06:46 PM, Alan wrote:
>> I just realized why you asked this question......
>
> Try Googling for an answer. It gets worse.
>
>> Use Section 167.
>
> Depreciation? After browsing through the various IRC sections, I was
> actually leaning toward 162(a). AFAICT, that is the section that makes
> non-interest financing expenses deductible in the first place. FWIW,
> this seems to support that reasoning:
>
> https://litigation-essentials.lexisnexis.com/webcd/app?action=DocumentDisplay&crawlid=1&doctype=cite&docid=25+Golden+Gate+U.L.+Rev.+151&srctype=smi&srcid=3B15&key=df8bcdc48518b0a56748ad53e69703ff
>
> Really, really irritating that the IRS doesn't provide a clear answer
> to what appears to be a very frequently asked question.
>

It doesn't matter what code section you enter on the form. That said,
162 is the catchall for business expense. 167 tells you to amortize.

--
Alan
http://taxtopics.net