Some legal fees associated with property purchasing and selling are not deductible, and should be lumped together with the property’s tax basis for depreciation.
This may include fees incurred to defend or protect title to property, recover property, or to develop or improve property.
Legal fees associated with the basis are often found on the property’s settlement statement, for example on lines 1106 and 1107 (notary and lawyer fees).
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Not All Legal Fees Get Expensed Right Away is brought to you by SimplifyEm Pay Rent Online and Property Management Software
|
Welcome back! What did you think of our Property Management Software?
Are you subscribed to our feed and receiving email updates? |
You might also want to read:
- 2010 Cooperatives Rental Property Tax Tips for Landlords, Real Estate Investors If you live in a cooperative, you do not own your apartment. Instead, a corporation owns the apartments and you are a tenant-stockholder in the cooperative housing corporation. If you rent your apartment to others,......
- 2010 Condo Rental Property Tax Deduction Tips for Landlords, Real Estate Investors A condominium is most often a dwelling unit in a multi-unit building, but can also take other forms, such as a townhouse or garden apartment. If you own a condominium, you also own a share......
- Foreclosure, REO Investors suing over HOA, Collection Fees Fur is flying in Las Vegas as foreclosure, REO investors fight homeowner associations for gouging them. Investment groups joined together to file a class action suit which claims that they are being overcharged by hundreds......
- 5 Tips for Affordable Landlords, Property Managers and Property Management Companies on selecting Property Management Software Affordable housing owners looking to purchase property management software face many different and difficult choices. For smaller companies, evaluating the software market for the first time can be a little overwhelming. There are a variety......
- 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.......
{ 1 trackback }