Yes. the settlement cost that can be added to the cost basis of the property. The following items can be included in the cost basis of the property when paid to purchase the property (not all inclusive):
- Real estate commissions
- Transfer tax
- Legal fees
- Advertising fees
- Home inspection reports
- Title insurance
- Geological surveys
- Loan charges (points) or other fees paid on the buyer's behalf
Sales or purchase expenses do not include:
- Mortgage payoffs
- Home equity loan payoffs
- Rent-back costs
- Payoff to creditors
- Property taxes
- Home owner association fees
- Insurance
- Loan origination fees (Points are mortgage interest and must be amortized over the life of the loan for a rental property).
@gxu120
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