Title and Recording fees in Rental Property Basis

[nolanm]

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

[Just-Lisa-Now-]

Added to basis?
https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses/rental-expen...

[nolanm]

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

Regards Nolan

[IRonMaN]

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.

[JRC]

Include with cost of building.

[sjrcpa]

Not just building - total cost.

[nolanm]

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?

[JRC]

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.