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!
Amortization refinance costs - IRC section for form 4562
Nov 15, 2013
4 Replies
See the form 4562 instructions for Line 42 column a where the IRS gives you the code sections for the category being amortized.
formatting link
I just realized why you asked this question......
Use Section 167.
Try Googling for an answer. It gets worse.
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:
formatting link
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.Join the Discussion
Have something to add? Share your thoughts — no account required.
Didn't find your answer?
Ask the community — no account required