Pre-inspection cost & investment property

[tc0312]

I bought an investment property and did a pre-inspection.

Can I add the pre-inspection fee to the cost basis of the investment property? Does it count as "surveys" in IRS terms?

[maglib · Accepted solution]

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.