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sviyer
Level 3

Rental property cost basis labels are different from Closing Disclosure form

Turbotax asks me for these values to compute the cost basis of my rental property
 
A Abstract and Recording Fees
B Legal Fees, Title Search, Document Preparation
C Land Surveys
D Title Insurance
E Transfer or Stamp Taxes
F Expenses You Paid for the Seller
 
However, my realtor did not issue me a HUD. All I have is the closing disclosure.
My closing disclosure contains the following:
 
1. Origination charges - Administrative Fee
2. Appraisal Fee
3. Credit Report Fee
4. Flood Certification
5. Tax service
6. Title-Courier Fee
7. Title - Lender's Title Insurance
8. Title - Settlement Fee
9. Recording Fees
10. City/County Tax/Stamps (Seller paid)
11. Real Estate Commission (Seller paid)
12. Title - Owner's Title Insurance (Seller paid)
 
Can you please help me with how these fit into the turbotax boxes... because the labels are different? Thanks!
 
1 Best answer

Accepted Solutions
AnnetteB6
Employee Tax Expert

Rental property cost basis labels are different from Closing Disclosure form

Try using these values:

 

A Abstract and Recording Fees  = 9 Recording Fees

 

B Legal Fees, Title Search, Document Preparation = 2 Appraisal Fee; 3 Credit Report Fee; 5 Tax Service; 6 Title Courier Fee; 8 Title Settlement Fee

 

C Land Surveys = 4 Flood Certification

 

D Title Insurance = 7 Lender's Title Insurance

 

E Transfer or Stamp Taxes = none (seller paid these)

 

F Expenses you paid for the Seller = none shown on your list

 

 

The seller paid items would not add to your basis.  Item 1 Origination charges would be amortized over the life of your loan instead of being added to the basis.  

 

 

@sviyer

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View solution in original post

2 Replies
AnnetteB6
Employee Tax Expert

Rental property cost basis labels are different from Closing Disclosure form

Try using these values:

 

A Abstract and Recording Fees  = 9 Recording Fees

 

B Legal Fees, Title Search, Document Preparation = 2 Appraisal Fee; 3 Credit Report Fee; 5 Tax Service; 6 Title Courier Fee; 8 Title Settlement Fee

 

C Land Surveys = 4 Flood Certification

 

D Title Insurance = 7 Lender's Title Insurance

 

E Transfer or Stamp Taxes = none (seller paid these)

 

F Expenses you paid for the Seller = none shown on your list

 

 

The seller paid items would not add to your basis.  Item 1 Origination charges would be amortized over the life of your loan instead of being added to the basis.  

 

 

@sviyer

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

sviyer
Level 3

Rental property cost basis labels are different from Closing Disclosure form

Hi AnnetteB6

 

Thank you for the detailed answer. It was very helpful and exactly what I wanted. Thanks again!

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