The general rules as they apply if you had purchased the property with a loan are:
- Costs associated with the acquisition of the property are added to the cost basis of the property. An example would include 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 (not depreciated) over the life of the loan. An example of this would include loan application costs and survey costs if the lender required a survey as a condition of approving the loan.
