Not All Legal Fees Get Expensed Right Away

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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

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