Can I deduct wire fee when paying off loan on rental property?

Question

I know if I refinance a loan on a rental property, the costs associated with the loan are amortized over the life of the loan. If I pay a loan off completely, can I deduct the wire fee? What about other fees charged by the lender, such as recording fee? I'm guessing yes, I can deduct these, but where? Just add up and list as "Loan Payoff Fees" under Other Expenses on Sched E? Seems like a dumb question after typing it out, but would welcome confirmation.

Account Closed · Answer

It is an expense of your property either as an investor or as a business, so yes.

(By the way, I cross things out and add categories on schedule E. Have been doing this for years. No complaints from IRS.)

Janet Valdivia · Answer

Thanks Account Closed, great suggestion to cross things out to add categories on Schedule E since space for Other is so limited. =)

Janet Valdivia · Answer

Thanks @Ashish Acharya, yeah I've always included a list of Other deductions to support Line 19, but crossing out an expense I don't use to put in something I do, if there are just a handful of things, seems reasonable per Karen's suggestion. I think the IRS doesn't care so much so long as the numbers add up, but as an overly-methodical perfectionist, I'll probably still do the list. =) Thanks for your reply!

Ashish Acharya · Answer

Yes you can, and you don’t cross out, you just add the detail itemized list of other deductions with the return.

Can I deduct wire fee when paying off loan on rental property?

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