Terry D EA Posted March 25, 2012 Report Posted March 25, 2012 When a person is in the business of acquiring residental rental property to produce income, are the legal fees charged as settlement costs deductible? I say yes, because the fees were incurred as a normal course of the business, the fees are ordinary and reasonable. Or, are the fees added to the basis of the property or amoritized as start up. If they are deductible as I mentioned earlier, and if someone has a reference, please post. Quote
Lion EA Posted March 25, 2012 Report Posted March 25, 2012 I'm remembering they get added to basis, but I don't have a single rental client currently to be able to check my notes. If a refi, amortized over what, the life of the loan or? Quote
Terry D EA Posted March 25, 2012 Author Report Posted March 25, 2012 Thanks for the reply. I did find the answer. The legal settlement fees are added to the basis of the property. Quote
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