Usually over time, not all at once. Points and similar charges on a rental loan are generally amortized over the loan term. The main-home rule allowing some points upfront does not apply the same way to rental property.
The expense-specific result is below. The shared BAR test, de minimis safe-harbor rule, and source guide live on the deductions hub so they are not repeated on every expense page.
A worked classification for mortgage points
A landlord pays $6,000 of points on a new 30-year rental mortgage. Straight monthly allocation illustrates $200 per full year, with the first and last years adjusted for months, rather than a $6,000 first-year deduction.
Records that support this treatment
Keep the Closing Disclosure, note, loan term, point calculation, monthly amortization schedule, payoff statement, and refinance documents.
IRS Publication 527 covers this timing under Points and Expenses Paid To Obtain a Mortgage. It distinguishes a new loan's amortized costs from the remaining points on debt paid off in a refinance.
Keep the invoice, the decision, and the Schedule E placement together. The broader rental property deductions guide and the Schedule E walkthrough cover the full return.
This is general information for organizing rental records, not tax advice. Elections, entity structure, mixed use, and the exact unit of property can change the answer. Bring the invoice and the underlying facts to a CPA before filing.