Investors & landlords

Your basis does not include all of the expenses spent in acquiring the property. For example, expenses such as meals, books, memberships, software, et al, would not be included in your basis (although the expenses may be deductible under certain circumstances depending upon when they were incurred and paid).

 

A list of settlement costs that are added to your basis (and those that are not) can be found at the link below).

 

https://www.irs.gov/publications/p527#en_US_2018_publink1000219052

 

Further, note that you should allocate any costs that added to your basis between depreciable assets (such as a building/structure) and land.