MonikaK1
Expert Alumni

Get your taxes done using TurboTax

The amounts you should enter as "escrow fees" are nonrecurring (one-time) closing costs related to the escrow. These costs are considered as part of purchasing the property and you can add them to your cost basis.

 

Costs paid through escrow that are otherwise deductible expenses for the current year, such as property taxes, interest, and HOA fees (for a rental property) are reportable as rental expenses.

 

See this IRS FAQ page for more information.

 

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