Commercial Loan Prepayment Penalty
Posted: 19-May-2022 12:14amMy client refinanced a SBA 504 loan and refinanced with the same lender. He paid $86k in prepayment fees to the bank and $8k to the SBA for the second loan on the building.
Does the prepayment fee get capitalized or deducted as a current year interest expense?
If he had instead refinanced with a different bank would this be deductible?
Does the prepayment fee get capitalized or deducted as a current year interest expense?
If he had instead refinanced with a different bank would this be deductible?