What is included in "legal fees, title search, document prep"?

Forum|Forum|5 years ago
April 27, 2021
2 replies
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I have an ALTA settlement statement and a closing disclosure form, not the HUD 1 form.

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CatinaT1

Level 15

These are not deductible expenses.

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mcanneyAuthor

Level 2

I understand that but I am required to enter the information to record and determine the depreciation of a new rental property

ThomasM125

Level 15

Broadly defined, those would be the miscellaneous fees associated with the closing on your property purchase. Included would be closing document preparation fees, lawyer fees associated with closing, inspection fees, accounting fees, etc...

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Carl

Level 11

Costs associated with acquisition of the property are added to the cost basis of the property. An example would be the title transfer fees paid at the courthouse to remove the seller's name from the deed and replace it with the buyer's name.

Cost associated with acquisition of the loan are amortized and deducted over the life of the loan. An example would be points/origination fees, as well as the property survey fee if that survey fee was a requirement of the lender as a condition of loan approval.