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fkhalilz
Level 3

Accounting for rental property inspection fee

I looked thru rental property expenses that can be deducted and did not see the real estate inspection fees I paid to have the property inspected before buying it in 2018.

How is this accounted for in Turbotax (which screen)? Should this be included in the cost basis of the property (i.e. purchase price + closing costs + inspection fees)?

Also how do I answer the question about "did you make improvements to the property in 2018?" if inspection fee is considered an improvement?

Thank you!


1 Best answer

Accepted Solutions
maglib
Level 10

Accounting for rental property inspection fee

that is part of the cost basis of the rental property. All costs of purchase are allocable to the basis of the depreciable asset.

You may want to review the schedule e instructions for what belongs within line items.  In most cases it does not matter for errors on line items, try to be consistent from year to year where you report the expenses.

https://www.irs.gov/pub/irs-pdf/i1040se.pdf

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1 Reply
maglib
Level 10

Accounting for rental property inspection fee

that is part of the cost basis of the rental property. All costs of purchase are allocable to the basis of the depreciable asset.

You may want to review the schedule e instructions for what belongs within line items.  In most cases it does not matter for errors on line items, try to be consistent from year to year where you report the expenses.

https://www.irs.gov/pub/irs-pdf/i1040se.pdf

View solution in original post

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