SusanY1
Expert Alumni

Deductions & credits

You will not deduct the earnest money, down payment, etc. as  separate expenses. All of these, as well as the principal amount of the loan are used to form your basis in the property which is then expensed annually through depreciation expense. 

 

When you enter the asset into TurboTax it will walk you through all of the steps to determine the basis which include the closing costs and fees associated with the initial purchase. 

 

Of the items that you listed above, only the life insurance stands out to me as an item which may be better listed as a current expense rather than added to the basis (the exception to this would be if you purchased a single-premium insurance policy at the time of closing) as it will continue to be an ongoing expense. 

 

 

 

@transcendancestu

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