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Updated almost 6 years ago on . Most recent reply presented by

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6
Posts
1
Votes
Janet Valdivia
  • Rental Property Investor
  • Gaithersburg, MD
1
Votes |
6
Posts

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

Janet Valdivia
  • Rental Property Investor
  • Gaithersburg, MD
Posted

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. 

Most Popular Reply

Account Closed
  • Financial Advisor
  • CA
76
Votes |
128
Posts
Account Closed
  • Financial Advisor
  • CA
Replied

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.)

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