Tax questions on rental property

[Nupur Daruka]

I had two questions on my first rental property that I recently bought

1. Can I deduct the closing cost in my rental property taxes for 2023. I just bought it in Nov 2023

2. To buy this property I had taken out a fixed line of credit against my primary. Can I put the mortgage interest as a deductible for my real estate property in Schedule E under other section.

[Sean O'Keefe]

@Nupur Daruka

1. The majority of these closing costs will need to be depreciated - there are a couple that you can deduct immediately in the tax year you purchased the property
2. Yes, provided the funds from HELCO were used to fund rental

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*This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.