nolanm
Level 4
‎08-19-2021 10:47 AM

Hi all

TP has $8k of title, closing fees, survey fees etc. on a rental property he purchased.

I entered as an asset entry, selected type "L" ammort intangibles". Clicked on basis and added the entries into the drop down grid to total the $8k. Selected section 197 as the IRC ammort section which populates as a 15 year depreciation.

Is this accurate or is there a place for each of the items eg. title, homestead, closing etc.

Thanks again to the best forum to work with

Nolan

0 Cheers
Just-Lisa-Now-
Level 15
Level 15
‎08-19-2021 10:50 AM
Added to basis?
https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses/rental-expen...

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
nolanm
Level 4
‎08-19-2021 10:53 AM

thanks for that Lisa. Yes believe I am following that guidance. Just wrestling with how to enter it into proseries.

Regards Nolan

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IRonMaN
Level 15
‎08-19-2021 10:57 AM

They are part of the cost to acquire the property.  They get added to the cost directly paid to purchase the property ------- they don't get broken out separately.


Slava Ukraini!
JRC
Level 8
‎08-19-2021 11:05 AM

Include with cost of building.

sjrcpa
Level 15
‎08-19-2021 11:13 AM

Not just building - total cost.


The more I know the more I don’t know.
nolanm
Level 4
‎08-19-2021 11:17 AM

Thanks for all the comments. My research earlier re splitting out as intangible incorrect?

So I will add to cost/basis. Would you not even double click this field and break out purchase price, title, closing etc?

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JRC
Level 8
‎08-19-2021 11:23 AM

Depends on how detailed you want to be.

When allocating to the property you should allocate to RE and Land appropriately.

As other have said.