We have a rental investment property, and we refinanced the mortgage on it in Dec 2010. Can I count the closing costs as an expense for
2010? Or does it count as a depreciable expense? Or something else? I didn?t pay any points. These are some of the things that are included in the closing costs:
Origination charges Appraisal Credit report Prepaid interest Title services and insurance Government fees and taxes
I looked around on the internet, and various sites said various things. Here are some of the answers I saw:
- All expenses (including points plus other loan expenses) in connection with securing the loan are deductible over the loan term.
- Appraisal, credit report and lender's inspection fees: These costs should be added to the cost basis of the property and must be depreciated.
Thanks in advance for your help, John