Per Pub 527 (Under cost basis, Chapter 2, page 7) and Pub 946 under settlement costs, that
"The following are settlement fees and closing costs you can’t include in your basis in the property."
"3. Charges connected with getting or refinancing a loan, such as:
a. Points (discount points, loan origination fees),
b. Mortgage insurance premiums,
c. Loan assumption fees,
d. Cost of a credit report, and
e. Fees for an appraisal required by a lender.
HOWEVER, I'm reading what appears to be a contradiction, also in Pub 527 and several articles: Pub 527 also says "Expenses paid to obtain a mortgage. Certain expenses you pay to obtain a mortgage on your rental property can’t be deducted as interest. These expenses, which include mortgage commissions, abstract fees, and recording fees, are capital expenses that are part of your basis in the property." (Ref Chapter 1, Rental Expenses, pg 3).
If that wasn't confusing enough, when I google this I find articles like this: https://homeguides.sfgate.com/can-amortize-rental-property-77587.html
"When you first buy a rental property, your loan and acquisition costs get added into the cost basis and cannot be amortized, although they do get added to your basis for depreciation. However, when you refinance your rental property's loan, the IRS treats that as a new expenditure, just like an improvement..."
Which is it: Who do I believe??
