Sale of Rental Property Settlement costs

[Possi]

Embraced in Settlement charges of the sale of rental property, are Loan Origination fees.

Must I back this expense out of the deductible expenses?

I know they are not deductible to the seller (when the seller pays them) on personal sales of residential rental. And I would think it is the same for rental. Just thought I'd check.

At 3:30 am I think I will go back to bed....

thanks!

[Snaggletooth]

Add to Basis

Possi, if this is a rental property, EVERYTHING paid in the closing process is deductible somewhere.

There is no current deduction for some items, such as loan origination fees. But closing costs which cannot otherwise be deducted (such as selling expense) can be added to the basis of the home on Form 4797.

[Possi]

Good

Possi, if this is a rental property, EVERYTHING paid in the closing process is deductible somewhere.

There is no current deduction for some items, such as loan origination fees. But closing costs which cannot otherwise be deducted (such as selling expense) can be added to the basis of the home on Form 4797.

I did something right! Maybe I should work all night EVERY night.....
hmmm let me think... NOT!

Thanks, Snag!