In 2016 I purchased a property at IRS auction, the property had an existing lien holder. Can the amount I paid to lien holder be deducted in anyway?

Purchased property is rental property.

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In 2016 I purchased a property at IRS auction, the property had an existing lien holder. Can the amount I paid to lien holder be deducted in anyway?

You won't be able to deduct what you paid to the lien holder, but it is included in the cost-basis of the property.

For this reason, you will be able to claim depreciation expense as long as the property remains a rental.

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