Tax question about cost basis caculation for rental property

[Andreas W.]

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?

[Account Closed]

Depreciation start date depends when the property is ready and available for whatever business purpose. Check out example 2 in the link.

https://www.irs.gov/publications/p527/ch02.html#en...