REI closing costs tax deductible?

[Chris Drury]

Traditionally some closing costs are tax deductible for primary residence. Does this include REI properties?

[Jacob A.]

@Ned Carey

@Chris Drury

As is the case in almost every tax situation, it depends. If we are talking rental property here some costs can be deducted as a current year rental expense like property taxes and prorated interest. Some costs should be amortized over the life of the loan such as points (origination fees, appraisal fees, etc). Some costs should be added to the basis of the property such as survey fees, attorney fees, stamps, etc. I'm sure you can find some good articles online discussing each line item on the HUD statement. Hope this helps.