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Tax Deductions on New Real Estate

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    Tax Deductions on New Real Estate

    Hello savers,
    I'm new to real estate investing. I bought my first property in late December, so I only had about a week of rent and tons of initial expenses. Now I'm trying to figure out the taxes...

    Here's what I have so far:
    Income:
    *a few days of rent as documented on a 1099-Misc from my management company

    Expenses:
    *one month and a few days of HOA fees as documented on my closing documents
    *mortgage insurance (for the whole year of 2020, but paid in 2019)
    *depreciation (purchase price minus appraisal estimate of land value over a 27.5 year period)

    Questions:
    1) Is there any place where I can deduct my origination fee, processing fee, various title fees, or other closing costs? I assume it can be counted as some type of sole proprietorship start up cost and amortized over a period, but I haven't found instructions.

    2) How about my mileage going out to see the building, then signing the documents? Note: I stayed for 2 weeks (into 2020) for Christmas with family up there, but I would have gone for the business portion even if it were not near family. I'm not going to buy my first property blind.

    3) I took out a loan against my retirement account for part of the down payment. I assume there's no tax benefits for those expenses, but if anyone happens to have and idea, I'd love to hear it.
    -Milly
    Personal Finance Blogger, Mechanical Engineer, and Mother of 3 Toddlers
    milly.savingadvice.com

    #2
    TexasHusker can most likely provide some insight here.

    But, I'd recommend a good CPA who deals in real estate
    Brian

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