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Updated almost 7 years ago,
Tax Basis for deprecation, but some costs paid in 2nd year?
Hi, I purchased a commercial property at the end of December 2017. I wasn't billed for some of my lawyer's fees and inspection fees until 2018, around $20k. It is my understanding that I can add these to the basis for depreciation. How does this work since the fees weren't all paid in the year the purchased closed? Do I calculate the 2017 depreciation on the week and a half that I owned the property, but not include the fees paid in 2018? Do the fees paid in 2018 start a new clock and they depreciate in 39 years on their own? Thanks for any advice!