Hi

I am purchasing a property in NY as an investment property in the name of my LLC for $265k( 1930 construction date). I am putting 20% down and rest as mortgage loan for 30 yrs.

Questions

1. I have a total of $10k in closing costs - I believe as an investment property(in the name of my LLC) I can claim all these amounts and deductible over life of loan i.e 30 yrs so 10,000/30 = $333/year - Is that correct?

2. Are there any closing cost that I can claim full in the current year? 

3. Are there any closing cost that I cannot claim at all?

4. Depreciation- I am planning to do any improvements on this property and will be rented out day 1 of the sale. Can I still claim depreciation on this property? If yes what amounts can I claim over 27.5 yrs - Is it $265k ( i.e the purchase price) or the 20% down?

Do you have a CPA who works with real estate? They would know more regarding this.

In general,

Some closing costs get added to your basis and depreciated over the 27.5 years.

Some, if they are considered prepaid interest may be immediately deductible.

Some closing costs such as prepaid property taxes and insurance will be immediately deductible.

Only the building value gets depreciated, not the land value .  Typically the  building value may be 80ish% of the purchase price....in your case maybe about $210k, over 27.5 years.

Definitely have a cpa advise and set it up.

Thanks Wayne. Sorry I missed that building vs land part of it. Agreed and aligned.  I will check with my CPA but was wondering how you guys handle it

@Pradeepan Venukanthan

Building is depreciated
Land is not depreciated.

Regarding closing costs, some items are capitalized and depreciated. Some items are expensed in current year. Some payments are for escrow and not deductible/capitalized until paid by escrow to third party.

capitalized closing costs = title work, loan processing fees, etc
currently expensed closing costs = pro-rated real estate taxes, insurance, etc
Escrow = escrow payments

@Basit Siddiqi Thank you so much very helpful. 

You say NY, but not where. In very high value areas like NYC the ratio of land to improvement can invert on small buildings, the improvement becomes the minor portion. This happened to a new infill rowhouse down the block.