Costs associated with acquisition of the property are added to the cost basis of the property. An example would be the title transfer fees paid at the courthouse to remove the seller's name from the deed and replace it with the buyer's name.
Cost associated with acquisition of the loan are amortized and deducted over the life of the loan. An example would be points/origination fees, as well as the property survey fee if that survey fee was a requirement of the lender as a condition of loan approval.
