Skip to main content
TurboTax
Community
TurboTax
Community
TurboTax
Community
R
rahulv85
March 20, 2025
Solved

Can I include a) bank origination fees from my initial mortgage and b) mortgage fees of refinancing in the property cost basis ?

  • March 20, 2025
  • 1 reply
  • 0 views
No text available
    Best answer by AnnetteB6

    The renovation costs (items 1, 2, 3) can be included in the basis of the property.  A portion of item 4 may be included.  Item 5 would not be included.

     

    See Publication 551 to determine what portion of item 4 can be added to the basis.

     

    @rahulv85 

    1 reply

    A
    AnnetteB6
    March 20, 2025

    No, fees and costs of getting a mortgage loan cannot be added to the basis of the property.

     

    See IRS Publication 551 for reference.

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
    R
    rahulv85Author
    March 21, 2025

    Thank you, below are the type of fees I have paid for buying and renovating the apartment before converting primary residence to rental. Which ones can I include in the cost basis of the apartment? 

     

    1. Design and architect fees (renovation)

    2. Plumber and electrician fees (renovation) 

    3. Fees charged by the building architect for alteration (renovation) 

    4. Legal, lien search and due diligence fees (mortgage related)

    5. Costs related to initial mortgage and refinancing while it was personal residence before conversion to rental

    A
    AnnetteB6Answer
    March 21, 2025

    The renovation costs (items 1, 2, 3) can be included in the basis of the property.  A portion of item 4 may be included.  Item 5 would not be included.

     

    See Publication 551 to determine what portion of item 4 can be added to the basis.

     

    @rahulv85 

    **Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"
      TurboTax Sign In Widget
      TurboTax flag icon

      Unlock tailored help options in your account

      Create an account
      TurboTax Expert Assist
      TurboTax Expert

      Get answers to all your tax questions

      Our experts are available on-demand, no appointment needed. Get help all year long with TurboTax Expert Assist.

      Terms & ConditionsCookie settingsAccessibility statement
      Intuit
      TurboTax Credit Karma QuickBooks MailChimp

      ©1997-2022 Intuit, Inc. All rights reserved.
      Intuit, QuickBooks, QB, TurboTax, ProConnect, and Mint are registered trademarks
      of Intuit Inc. Terms and conditions, features, support, pricing, and service options
      subject to change without notice.

      Security Certification of the TurboTax Online application has been performed by
      C-Level Security.

      By accessing and using this page you agree to the Terms of Use.

      Accessibility

      TRUSTe nResult Certified e-File C-Level Security Certification