Deductible Legal and Professional Fees
Legal and professional fees related to your rental property can be deducted as a business expense.
Common deductions include fees related to tax preparation, drawing up leases, and resolving disputes with tenants or repair contractors.
Not all legal fees get to be deducted right away, like many of the fees you incur when purchasing property.
Do not deduct fees incurred to protect title to property, to recover property, or to develop or improve property. Instead, you must capitalize these fees and add them to the property’s basis.
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