investment property expenses for cost basis + purchase price

pita1250 — Mon, 09 Mar 2026 06:12:00 GMT

I purchased a piece of land for investment. Do I get to add all maintenance , taxes and advertising costs to the purchase price to increase the basis cost.

Re: investment property expenses for cost basis + purchase price

ErnieS0 — Sun, 13 Feb 2022 23:48:33 GMT

Yes. The IRS says you can add the costs of acquiring, producing, and improving tangible property, regardless of the size or the cost incurred if you elect to capitalize those costs each year.

I'm unclear about the advertising costs. Advertising in connection with a sale of the property would be a sales expense.

Tangible Property Regulations - Frequently Asked Questions

topic investment property expenses for cost basis + purchase price in Investors & landlords

investment property expenses for cost basis + purchase price

Re: investment property expenses for cost basis + purchase price