Escrow fees for rental property deduction

Forum|Forum|3 years ago
February 2, 2023
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I am confused by below items listed in <Escrow Fees> section under rental property.

Abstract and Recording Fees

Legal Fees, Title Search, Document Preparation

Land Surveys

Title Insurance

Transfer or Stamp Taxes

Expenses You paid for the seller

Turbotax requires to enter amount for each of the item but other than <Title Insurance> and <Recording Fees> I couldn't find exact match from my final buyer statement. The statement has category of <TITLE & ESCROW CHARGES>, are all the fees listed in this category in general considered escrow fees and can I deduct everything from it?

Best answer by AmyC

Since you are buying, they go into your basis. The program is trying to get the correct basis to use for depreciation. If you want to put everything allowed into the purchase price and skip that section you can.

See Pub 527 which states: Settlement fees and other costs.

The following settlement fees and closing costs for buying the property are part of your basis in the property.

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, charges for improvements or repairs, and sales commissions.

See:

Real Estate Tax Center| IRS

Rental Real Estate and Taxes| Turbo Tax

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