Appraisal Fee Deduction

[Kyle Meyers]

I am getting a cash out refinance mortgage on one of my rentals and will be using the cash to rehab another property to rent out. As I understand it, the appraisal fee and some other closing costs are not immediately deductible. Are they amortized over the course of the loan or do they get added to the property basis? Also, should I deduct them on the schedule E for the property with the mortgage or the one I will be renovating with the funds?