MarilynG1
Expert Alumni

Deductions & credits

Any improvements you made to the home can be added to the Cost Basis, or added as Assets and depreciated along with the house.  However, mortgage interest, insurance, property tax paid during the year before rental can't be added to the Cost Basis. 

 

Closing costs (like title fees, recording fees, appraisals, inspections) and improvements made to get the house ready for rent can be added to the cost basis.  Property Tax paid at closing can be added to the basis.

 

@nerobins 

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