Tax deduction on rental property expenses (Tax season 2021)

[Sachin Amin]

Hello BP community - i was looking at IRS website to see if I can deduct closing costs for all the properties i purchased in 2020

Ref:  https://www.irs.gov/faqs/sale-...

FROM IRS Website------------------------------------

QuestionI purchased a rental property last year. What closing costs can I deduct?Answer

Generally, deductible closing costs are those for interest, certain mortgage points and deductible real estate taxes.

Many other settlement fees and closing costs for buying the property become additions to your basis in the property and part of your depreciation deduction, including:

• Abstract fees
• Charges for installing utility services
• Legal fees
• Recording fees
• Surveys
• Transfer taxes
• Title insurance
• Any amounts the seller owes that you agree to pay (such as back taxes or interest, recording or mortgage fees, sales commissions and charges for improvements or repairs).
• -----------------------------------------------------------------------------

can some one translate this so we can understand - so when i look at the HUD or settlement statement i can correlate some of them above but I wanted to check - I got foundation inspection on one of my unit which cost me $400 (can I deduct that as a expense ??)

I had to pay prorated utilities of abt $350 - can i deduct those as these are all out of expense I had to make before closing on the property ??

some other items like :

detail home inspection - roof+basement ($299)

 eviction fees($250), civil penalties because tenant did not maintain the property - land lord (me) had to pay in civil fines - appx $300

looking to see if anyone has encountered similar situation and opportunity to file these expense as expense ??

Cheers

Sachin

[Brian Garlington]

@Sachin Amin    I'd certainly recommend @Bill Hampton   I've utilized his services in the past and I will utilize him again this year. I have rentals in Cleveland as well as the San Francisco Bay Area and his team has been most helpful when it comes to doing my taxes, etc.