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Question

I bought a rental property in 2006 and want to know if I can deduct the closing costs or if I have to include that as part of the depreciation.

Submitted: 971 days and 15 hours ago.
Category: Tax
Value: $9
Status: CLOSED
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bluffton, South Carolina

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Accepted Answer

Most of the closing costs items except pro-rated county property taxes paid and the points paid will be capitalized and considered as cost basis for depreciation purposes.

You can deduct points paid and county property taxes as deduction.

 

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

 

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Expert: RD
Pos. Feedback: 99.4 %
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Answered: 3/27/2007

Certified Public Accountant (CPA)

CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..

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