Rental property closing cost deduction

I have purchased an investment property on June 2024. Then, I refinance the loan on October 2024. May I deduct all the closing expense for the first loan? Some of the closing cost on the refinance (second loan) will be deducted in 2024 and some will added to base for property depreciation.

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Rental property closing cost deduction

You may deduct some of the closing costs (other costs will need to be added to your cost basis and depreciated).

"For your primary or secondary home, the only deductible closing costs are home mortgage interest and certain real estate taxes.

These deductible costs generally include:

Real estate taxes paid at closing
Mortgage interest paid when the cost was settled
Interest paid at the house’s purchase
Loan origination fees, known as “points”

Note: Other costs are deductible when refinancing your rental property."

TurboTax FAQ: Can I deduct mortgage closing costs?

TurboTax FAQ: What can I deduct when refinancing rental property?

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