Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 09-15-2009, 01:15 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
What closing costs related to a purchase of a rental property are deductible?

According to the IRS, "the only deductible closing costs (related to a purchase of a rental property) are those for interest and real estate taxes related to the rental propery."

The other costs related to a closing on a purchase of a rental propery become additions to the taxpayers basis in the property acquired and thus become part of your depreciation deduction.

What costs are considered an addition to basis?
The IRS has specfically identified the following costs listed below that would become an addition to the basis of the rental property acquired and thus form part of the depreciable deduction as follow;

1.Abstract fees

2.Charges for installing utility services

3.Legal fees

4.Recording fees

5.Surveys

6.Transfer taxes

7.Title insurance

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 12-31-2012, 03:13 AM
Junior Member
 
Join Date: Dec 2012
Posts: 1
thanks

thanks for the share. this is really very helpful



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Deductible home selling costs SteveB Itemized Deductions 2 08-26-2011 11:03 PM
Closing costs for vacant land purchase mantismm Itemized Deductions 1 02-07-2009 10:55 PM
IRS allows costs for setting up guardianship for Alzheimers patient to be deductible! TaxGuru Medical 0 11-04-2008 11:45 AM
Using equity to purchase rental ngarrant Rental Real-Estate 3 02-18-2008 11:01 AM
What closing costs can I deduct from a purchase of a rental property? katlee Rental Real-Estate 1 02-11-2008 04:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.