the property basis, consists of the agreed upon purchase price, plus closing costs like title insurance, transfer taxes, inspections, appraisals (if paid outside of closing), travel costs, attorney fees, and notary or bank fees.
From the property basis, subtract out our land value to determine the total value in which to begin depreciating. This is called the depreciable basis.
Purchase Price + Closing Costs – Land Value = Depreciable Basis
Depreciation will usually be over a period of 27.5 years.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.