Should I amortized the closing costs of a mortgage loan that paid off another loans?
We have a mortgage loan of $1.5m to pay off the other loans. So we consolidated the following debts into a new loan which the amount is $1.5m. We "wrap around" because the mortgage value exceeds the value of the property. We do this so that we can reduce the cost of the debt to the company which continues to operated at a loss over the past 5 years.
There are closing expenses as we acquire the loan:
Reimburse Fee
Interim Interest
Credit Reports
Appraisal fee
Environmental fee
Lien searches
Legal fees
Packaging fee
TOTAL = 70k
There is also another expenses which is not included in closing cost.
Title fees and expenses = 60k
How to properly record these expenses, which one to amortize and which one to just record directly as expenses? Thank you so much in advance!