MarilynG1
Expert Alumni

Investors & landlords

What closing costs are included in basis?

 

Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including:

  • Abstract fees.
  • Charges for installing utility services.
  • Legal fees.
  • Recording fees.
  • Surveys.
  • Transfer taxes.
  • Title insurance.
  • Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, sales commissions and charges for improvements or repairs).

Here's more detailed info from IRS.gov.

 

@bhutanihitesh 

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