Writing Off Up-Front Costs

[Craig Fitzsimmons]

Hi All, I am set to close on my third property later this week (all this year) and want to make sure I'm organizing all paperwork for tax write-off purposes. What "up front" costs can I write off? Appraisal, inspection, closing costs, etc? Do I simply keep the closing docs that details these line items and give to my accountant? Thanks in advance. Cheers!

[Paul Allen]

@Craig Fitzsimmons: When dealing with rental properties - very generally speaking:

-Costs of acquiring the loan are amortized over the life of the loan.

-Costs of acquiring the property are capitalized and depreciated over the life of the property.

-Operating costs are expenses deductible in the year paid.

Take your settlement statement(s) and other expense records to a tax professional for more precise guidance.

Congratulations and good luck!