Andover, MA · Member since 2018 · 3 posts · 2 votes
I just bought my 1st rental property last year and need some help with what costs to file for tax return.
Turbo Tax asking to escrow fees for following categories: Abstract and recording fees Legal fees, title search, document preparation land survey title insurance transfer or stamp taxes expenses you paid for the seller
These are the expenses on the closing summary: Record deed record mortgage mortgage tax bank attorney fee HOA questionnaire flood certification fee title exam title insurance (mortgage) title insurance (owner) delivery charge legal fees application fee appraisal fee credit report fee
which categories will the fees on the closing summary fall into? And will I enter other fees under expenses (loan application fee, credit report fee)?
Costs specifically connected to obtaining the mortgage (appraisal, credit report, origination fee etc.) are combined into "loan costs" and then set up for amortization over the length of the mortgage.
The rest is added to the purchase price and results in "tax basis" which is then set up for depreciation over 27.5 years, after allocating a portion of the basis to land.
If this process sounds complicated (which it is) - you may need an accountant to help.
Costs specifically connected to obtaining the mortgage (appraisal, credit report, origination fee etc.) are combined into "loan costs" and then set up for amortization over the length of the mortgage.
The rest is added to the purchase price and results in "tax basis" which is then set up for depreciation over 27.5 years, after allocating a portion of the basis to land.
If this process sounds complicated (which it is) - you may need an accountant to help.
Costs specifically connected to obtaining the mortgage (appraisal, credit report, origination fee etc.) are combined into "loan costs" and then set up for amortization over the length of the mortgage.
The rest is added to the purchase price and results in "tax basis" which is then set up for depreciation over 27.5 years, after allocating a portion of the basis to land.
If this process sounds complicated (which it is) - you may need an accountant to help.
Thank you so much for your help. I think I have an idea how to separate these fees:
Loan cost - Amortized over life of loan
- Application fee
- Appraisal fee
- Loan Origination Fee (delivery fee)
- Credit Report Fee
- Record Mortgage fee
- Mortgage tax
- HOA questionnaire
- title insurance (mortgage)
- bank attorney fee
Tax basis
Abstract and recording fees
record deed
Legal fees, title search, document preparation
legal fee
title exam
land survey
flood certification fee
Inspection fee
title insurance
title insurance (owner)
Is there anything I listed under the wrong categories?
Specialist · Easton, PA · Member since 2018 · 136 posts · 48 votes
8y
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