We purchased a rental home in our s corp this year. I understand the basic depreciation; I am putting land as non depreciable asset, house as deprec asset over life of 27.5, my main question is...what about the closing costs? The interest, r/e taxes, professional services can be expensed what about the rest such as title fees, points and so forth.

“.what about the closing costs? The interest, r/e taxes, professional services can be expensed what about the rest such as title fees, points and so forth.”==== When it comes to buying rental property, the IRS makes it expressly clear what you can deduct as far as closing costs. The only deductible closing costs are those for interest and deductible real estate taxes. Other closing costs such as transfer taxes add to the cost basis of the property and become part of your depreciation deduction; The IRS has provided a list of the other settlement and closing costs (that are additions to basis in the property) as follows:
* 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.The costs that are basis adjustments will be part of your yearly depreciation deduction for the rental property. Points that are paid for a residence that is not your primary must be amortized over the life of the loan. You will do this in the same place that you set up depreciation for the rental property. When you are setting up the asset, you will select Amortization for the method. Additionally, you will have to enter the Recovery Period to get the calculation to work. The recovery period, again, is the life of the loan.When you dispose of the rental pty later, yiu need to recapture unrecaptured depre taken previously as ordinary income taxed at 25%as long as yur marginal tax rate is higher than 15%)