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February 27, 2025
Question

where are legal fees for real estate investments to be entered?

  • February 27, 2025
  • 1 reply
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I was charged legal fees for a property sale and settlement

    1 reply

    March 2, 2025

    Your cost basis in the real estate includes fees and closing costs for buying the property.

     

    IRS Publication Basis of Assets, page 3 states:

     

    The following items are some of the settlement fees or closing costs you can include in the basis of your property. 

     

    • Abstract fees (abstract of title fees). 
    • Charges for installing utility services. 
    • Legal fees (including title search and preparation of the sales contract and deed).
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