Tax, SDIRAs & Cost Segregation
Market News & Data
General Info
Real Estate Strategies

Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal



Real Estate Classifieds
Reviews & Feedback
Updated over 9 years ago on .
Most recent reply
presented by

Tax question about cost basis caculation for rental property
For the first time I started the acquisition of a SFH in one year and closed in the following year. In 2015 I paid inspection fee, loan origination fee, and appraisal for a property I closed on in 2016. I understand that these fees increase the cost basis of the acquired rental property and that they get depreciated over 27.5 years. Do I start depreciation of the fees at the closing date in 2016 or is there a different mechanism to apply since the expenses actually occurred in 2015?
Most Popular Reply
Depreciation start date depends when the property is ready and available for whatever business purpose. Check out example 2 in the link.