Unamortized fees on paid off rental property mortgage

In 2013 I purchased a rental property. Because of appraisal issues, I originally purchased the property with "cash" (401k loans, etc.), and "refinanced" the property a few months later (a process known as delayed financing).

Because the purchase and financing were completely separate transactions I have been amortizing the fees associated with the mortgage over the stated term of the loan. Earlier this year I paid off the loan (but I did not sell the property).

I see conflicting advice on the proper way to report/deduct the unamortized fees. Some sites seem to suggest simply adding them to the amortization expense that is reported on line 19 of schedule E. Other sites suggest reporting it as a "sale" on form 4797, with a $0 sales price.

Thoughts?

Reply to
Ian Pilcher
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I have always kept the character the same. That puts the amount on Line

19 of Sched. E.
Reply to
Alan

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