Can loan closing costs on a rental property be deducted as an expenses?

Forum|Forum|6 years ago
June 26, 2020
5 replies
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abctax55

Level 15

Depends on the specific closing cost.

Some are deductible, some have to be capitalized to basis, some have to be capitalized & amortized.

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qbteachmt

Level 15

@abctax55

My details took longer, so my reply came after yours 🙂

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abctax55

Level 15

I was trying to make the OP do the work....

HumanKind... Be Both

qbteachmt

Level 15

It would likely be helpful to sort out the info with details. For instance:

Loan from whom to whom for what reason?

"Closing" typically relates to the selling of real property.We don't know if you are asking on behalf of a buy or seller.

Loan or not is how it got paid for. There are various types of Costs for Closing the loan. For Loans, you might have Origination fees, points, commissions, property taxes (in arrears or to sale date) and other escrow amounts.

And whose Expense would you like this to be? 1040? 1065?

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