I received a settlement statement instead of a HUD-1. Which of these expenses do I include in the cost basis?

[streampaw]

So the title companies here don't give out HUD-1's, apparently, just settlement statements. Which makes it difficult to figure out what I can include in my cost basis for depreciation. I bought a property with an SBA loan and am trying to figure out which of the costs I need to include in the cost basis. 

Turbotax is asking for the following: 

•  Abstract and recording fees
• Legal fees, title search, document prep
• Land survey
• Title insurance
• Transfer or stamp taxes
• Expenses you paid for the seller

The first table of expenses on my settlement statement is named "New Loans", and includes the following, and they're all written to the bank that I used: 

• Environmental report to Bank
• Appraisal report to Bank
• Credit report to Bank
• Flood certification to Bank
• Lexus nexus to Bank
• Wire fee to Bank
• UCC fees to Bank
• Tax transcripts to Bank
• Tax transcript fee to Bank
• Guaranty fee (this one was really expensive because this is an SBA loan on the property) to Bank
• Packaging fee to Bank

The next table on the statement is named "Title Escrow Charges to", and includes the following: 

• E-recording fee to Title Company
• Misc Title Processing Fee to Title Company
• Escrow/Closing Fee to Title Company
• ALTA Loan Policy extended to Title Company
• OTIRO, REM, Environmental Protection to Title Company
• Record Warranty Deed - First
• Record Warranty Deed of Trust - First
• Record Deed of Trust - Other to County Clerk
• Record Assignment of Rents to County Clerk

Then the last and final table is named "Disbursements Paid" and includes the following: 

• Professional Fees to SettlePou (this was also pretty expensive)
• Expenses to SettlePou

Which of these fees can be included in the cost basis and how do I group these into turbotax?  

[Vanessa A]

See bold print

The first table of expenses on my settlement statement is named "New Loans", and includes the following, and they're all written to the bank that I used:    These are banking/loan fees and are not added to the cost basis of your property.  Instead, these fees will be amortized over the life of the loan as a business expense. 

• Environmental report to Bank
• Appraisal report to Bank
• Credit report to Bank
• Flood certification to Bank
• Lexus nexus to Bank
• Wire fee to Bank
• UCC fees to Bank
• Tax transcripts to Bank
• Tax transcript fee to Bank
• Guaranty fee (this one was really expensive because this is an SBA loan on the property) to Bank
• Packaging fee to Bank

The next table on the statement is named "Title Escrow Charges to", and includes the following: These fees will be added to the cost basis of your property and depreciated along with the property.  If this is a commercial building, the depreciation is over 39  years.  If this is a residential rental property, your depreciation will be for 27.5 years. 

Legal fees, title search, document prep

• E-recording fee to Title Company
• Misc Title Processing Fee to Title Company
• Escrow/Closing Fee to Title Company
• ALTA Loan Policy extended to Title Company (This may be your title insurance, you will need to check with your attorney or whoever did the title search)
• OTIRO, REM, Environmental Protection to Title Company

Recording Fees

• Record Warranty Deed - First
• Record Warranty Deed of Trust - First
• Record Deed of Trust - Other to County Clerk
• Record Assignment of Rents to County Clerk

Then the last and final table is named "Disbursements Paid" and includes the following: This I am not sure of, it looks like it may be the law firm that handled the property, like a real estate agent or someone that listed the property? Or did you have to pay other fees for the seller like back water bills or other items to get the title clear?  If they are costs you paid for the seller, they would be included in the cost basis as well. 

• Professional Fees to SettlePou (this was also pretty expensive)
• Expenses to SettlePou

[streampaw]

How many years would it be depreciated if it's a mixed use building? There is one apartment in it that is rented out for income. And the settlement fees are some random fees to the bank, I believe. 

[DianeW777]

The apartment portion would be a residential rental property and the cost basis would be based on the square feet of the apartment. You would divide the apartment square feet by the total square feet of the building.  The result would be multiplied by the cost basis of the building only (not the land portion). The result would be your depreciable basis for the apartment and must be depreciated over 27.5  years.  By selecting Residential Rental Property TurboTax will know the correct recovery period to use.  Appliances would have a 5 year recovery period when and if you purchase those.

You can arrive at the cost of the land by using the tax assessments from the county or city if you do not have a separate land value.

As far as the rest of the building, if it is commercial use, then the recovery period would be 39 years as explained by our Tax Expert @Vanessa A.  If it is personal use, then no deduction would be allowed for that.

Be sure to include all the allowable expenses from your settlement statement with your cost of the building before your calculations.