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Returning Member
posted Apr 1, 2024 8:48:31 PM

For the purchase price of my rental property, do I have to include other fees I paid when I bought the property?

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1 Best answer
Expert Alumni
Apr 2, 2024 6:00:07 AM

Yes, you would want to do that.  Below is a list of what can be added to the cost basis and what cannot.  Also add any capital improvements if you made any before placing it in service for rent.

 

Government Recording and Transfer Charges- these are added to the cost basis of the property

  • Recording fees
  • Title Charges
  • Lenders Title Policy
  • Settlement or Closing Fee
  • MLC  - Assuming it means Municipal Lean Certificate
  • Title Exam
  • Owners title Insurance

You can include these closing costs and add them to the cost basis of the property as noted above.

 

Loan charges - Loan charges are part of the loan and not added to cost basis

  • Application fees
  • Lender fees
  • Appraisal Fee
  • Inspection Fee
  • Condo Questionnaire
  • Credit Report
  • Debt Report

You can't include in your basis the fees and costs for getting a loan on property.

1 Replies
Expert Alumni
Apr 2, 2024 6:00:07 AM

Yes, you would want to do that.  Below is a list of what can be added to the cost basis and what cannot.  Also add any capital improvements if you made any before placing it in service for rent.

 

Government Recording and Transfer Charges- these are added to the cost basis of the property

  • Recording fees
  • Title Charges
  • Lenders Title Policy
  • Settlement or Closing Fee
  • MLC  - Assuming it means Municipal Lean Certificate
  • Title Exam
  • Owners title Insurance

You can include these closing costs and add them to the cost basis of the property as noted above.

 

Loan charges - Loan charges are part of the loan and not added to cost basis

  • Application fees
  • Lender fees
  • Appraisal Fee
  • Inspection Fee
  • Condo Questionnaire
  • Credit Report
  • Debt Report

You can't include in your basis the fees and costs for getting a loan on property.