New rental asking for HUD-1 items on TurboTax

[cao154]

I have a new rental and TurboTax is asking for these items from HUD-1 Form:

1. Abstract and recording fees

2. Legal fees, title search, document prep

3. Land survey

4. Title insurance

5. Transfer or stamp taxes

6. Expenses you paid for the seller

I only have a Closing Disclosure. My Closing Disclosure has these items, which correspond?

1. Document Preparation Fee

2. Lender Fee

3. Processing Fee

4. Underwriting Fee

5. Appraisal Fee

6. Flood Determination Fee

7. Flood Life of Loan

8. Tax Transcript Fee

9. Title- Closing Protection Letter Fee

10. Title-Document Preparation Fee

11. Title-Lender's Title Policy

12. Title-Lien Letters

13.  Title-Notary Fee

14. Title-Settlement Fees

15. Title-Title Endorsements

16. Recording Fee

[MonikaK1]

The fees on your escrow settlement documents appear to be standard fees that can be added to the purchase price in determining the cost basis of your property. They generally go with items 1, 2, 4 and 5 of the list that TurboTax mentioned relative to Form HUD-1.

See this TurboTax help article, under "What fees and costs can I add to the basis of my property?".

[pk]

@cao154 , having read your post and the response of my colleague @MonikaK1  ( of course agreeing with her ), what TurboTax is trying to do is to segregate the expenses  ( the details that  HUD-1 provides ) into two categories --- those related to the acquisition of the property  and those that are related to the loan that is secured by the property.   

The first ,( i.e.  the  asset related expenses )  are classed as  part of the acquisition cost and therefore  becomes part of  your basis  in the asset.  You  will need the basis for computing your gain  when you dispose off the  asset.

The second ( i.e. items/expenses related to the loan/ mortgage )    -- including points  paid etc. are loan costs  and treated as  advance payment of interest and therefore amortized over the life of the  loan ( whether it is a  30 year or 15 year or whatever ). This reduces  your taxable income from the rental endeavor , just like depreciation.

Hope this helps.

Is there more I can do for you

pk