@jkm88 the thread you posted in is more than three years old. When you have multiple people starting their issue by posting in an existing thread, it leads to confusion and the high, high probability that you will be provided incorrect information.
I did mine by capitalizing it as part of the cost basis (depreciated over 27.5 years).
Make sure you add it to the cost basis of the structure only, and not the land. Also, know what gets added to that cost basis, and what get amortized/deducted (not depreciated) over time.
-Those costs related to the acquisition of the property are added to the cost basis of the property and depreciated over time.
-Those costs related to acquisition of the loan are amortized and deducted (not depreciated) over the life of the loan.
I do not recommend using the "increase/decrease to basis" page, only because I don't know for a fact that it increases the basis in the structure only. In my opinion (and we all know what opinions are like) you're better off adding it to the amount entered in the COST box on the screen that asks for cost, and cost of land. Then, since your cost of land will not change, the addition to the total cost will just be included as a part of the structure costs.
Also, inspections having to do with acquisition of the loan are an amortized costs. (I myself am not aware of any of these types of loan acquisition costs, but it's been a few years and laws have changed slowly over time.)
