Realtor commission

[Mark Forest]

Are realtor commissions I paid for a new rental property able to be capitalized to the cost of the property? Tubo Tax has a spot for legal fees, title insurance, recording fees, but nothing for realtor commissions. I spoke to TT help and he could not find it either. He said it must not be an expense I can declare in any way.

[Rob K.]

Steve Might, I'm no accountant, but I think it would be added to the basis of your property. If you bought the house for $30K, put in $5K in improvements, and paid the agent $750, your cost basis would be $35,750. You would then subtract out the land value and depreciate the rest over 27.5 years.

If @Steven Hamilton jumps in, he will have the correct answer.