Hello,
1. Can "Escrow fee" - the charge owner of rental property paid at closing for "escrow service" to the escrow company - be added to cost basis of rental property or not? I assume it goes under "legal fees"?
2. Can "Lender's Title Insurance" be added to cost basis of rental property? I read somewhere that "only items that you would have paid if you bought property in cash" can be added to cost basis and nothing related to lender, at all. Publication 527 does not specify Owner's or Lender's title insurance and only says "Title Insurance" can be added to cost basis.
This is how it is on my Closing statement:
Title&Escrow Charges:
1. Title - Escrow Fee Chicago Title Company $XY amount.
2. Title - Lender's Title Insurance Fidelity National Title $Z amount
Thank you
I read publication 527, and saw the list of what can be added. I guess I am asking is escrow fee added as "legal fees"?
