What Affect's the Cost Basis on Capital Gains

[Ted Klein]

I am looking for clarification on whether the closing costs on multiple refinances of a rental property might affect the Capital Gains. Is it only on the original purchase or are subsequent refinances included in the cost basis of the property?

[Ashish Acharya]

Originally posted by @Ted Klein:

I am looking for clarification on whether the closing costs on multiple refinances of a rental property might affect the Capital Gains. Is it only on the original purchase or are subsequent refinances included in the cost basis of the property?

Yes, it matters, but you get the deduct the original loan cost when you refi to the new one. I have seen people lose 15k in basis when they refi.