Amortize loan fees over life of loan

[Milly Bishop]

I just bought my first rental property after 3 years of chickening out (whaoo!!), but now it's tax time.

I see on lots of sites (including IRS Publication 527) that you can deduct your initial mortgage fees (origination fee, processing fee, appraisal, credit check, etc) amortized over the life of the loan.  I can't for the life of me figure out what form you do that on.

Both Publication 527 and 535 say it needs to be treated as an OID, which makes absolutely no sense to me.  Even if I figure out how it is an OID, I don't know what form/line it goes on.  

This is a big deal to me because the deduction would add up to about one month's cash flow on a fairly small margin deal.

Thank you in advance!!