@MaryK4 I differ on this. Per IRS Publication 527 Basically, page 7 says appraisal fees can't be added to the cost basis.
It indirectly says appraisal fees are deductible at settlement costs (closing costs, sales expenses) only if they are a requirement of the lender for loan approval. Typically, not something deductible by the seller.
Last item on page 7 of IRS Pub 527, item #3d.
They are also not deductible as a direct rental expense either. I've seen situations where a property insurer required a property appraisal as a condition of insuring the property. In that situation it would seem to me the appraisal cost is included in the insurance costs for that first year.
