Both are in fact, saying the same thing in Pub 527. I have emphasized the terms in each passage.
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.
Settlement fees and other costs. The following settlement fees and closing costs for buying the property are part of your basis in the property. • 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, charges for improvements or repairs, and sales commissions.
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