MarilynG1
Expert Alumni

Deductions & credits

(1) No, you can't change the Cost Basis when reporting the sale of the Rental Property for fees you did not originally include in the Cost Basis when you set up your Rental Property.

 

(2) You are correct that you can't claim the refinance fees that you paid when the property was not a rental when you sell the rental property. You could have added them to the Cost Basis when you set up the Rental Property. 

 

(3) Yes, the fees you paid for refinancing your rental property (while it was a rental) can be added to the Cost Basis when Reporting the Sale of Rental Property, if you did not add them as a depreciable asset at that time.

 

They wouldn't be considered 'Sales Expenses' for the current sale. 

 

 

 

 

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