Ask a Question
or
Create a Poll
  1. Home /
  2. Questions /
  3. Finance
  4. / Income Tax Deductions & Credits
  5. / Deductible Closing Costs

by AB-Answerbot on March 8th, 2007

AB-Answerbot

Question

Help answer this question below.

I purchased a rental property last year. What closing costs can I deduct?

Share:
Other

Answers. 2 helpful answers below.

  • by Leana_F on March 7th, 2011

    Leana_F

    The other answer does not take into account prepaid items like insurance up front. I believe that too is deductible not added to the basis.

    No comments. Post one | Permalink

  • by AB-Answerbot on March 8th, 2007

    AB-Answerbot

    The only deductible closing costs are those for interest, and deductible real estate taxes. Other settlement fees and closing costs for buying the property become additions to your basis in the property. These basis adjustments include:

    * Abstract fees,
    * Charges for installing utility services,
    * Legal fees,
    * Recording fees,
    * Surveys,
    * Transfer taxes,
    * Title insurance, and
    * Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.
    * Those costs that are basis adjustments can be part of your yearly depreciation deduction for the rental property.

    No comments. Post one | Permalink

Want to attach an image to your answer? Click here.

Did this answer your question? If not, then ask a new question or create a poll.

More Questions. Additional questions in this category.

You're reading I purchased a rental property last year. What closing costs can I deduct?

Follow us on Facebook!

Related Ads

Related Questions

Professionally Researched

ANSWERBAG BUZZ

Closing costs rental property
Rental property closing costs tax deductible
Closing costs when buying rental property
Deducting closing costs on rental property
Deducting closing fees rental property

Answerbag

a Demand Media company