Legal Fee Deduction For Rental Property

[Terry D EA]

I am working on a partnerhsip that is soley in the business of residential rental property to produce income. This is an LLC and this year they bought twpo additional properties. The attorney fees charged at closing, are they deductible as an expense, or should they be added to the cost of the property? I am questioning amortization as a startup as well. These fees are necessary and ordinary for their course of business and to produce income so must first thought is deductible as an expense. Opinions please.

[W-tax]

Terry,

legal fee for closing must be added to cost of property. When you deprecation, you can't put all gross purchase price plus cost of others. Deduct the land value.

legal fee for LLC can be as startup for amortization.

WWW.irs.gov and search for the basis cost of rental property. you will find this information. I

[Terry D EA]

Thanks WTax, I guess it is time to quit already. I re-read my post and you are correct, these fees are not for startup of the LLC. The land value has been separated and I will add the legal fees to the property acquistion costs.

THANKS

[Terry D EA]

I don't think I can assist you with this. I am not a CPA yet. But thanks for asking.