Can I deduct any fees from the Statement of Adjustment for a condo purchase?

[sophiey-cheng]

My purchase of a condo (investment property) deal closed in March 2024. there are legal fees and other fees on the statement of adjustment, can I deduct any of those fees? do i need to file my purchase anywhere?

[TurboTaxSusan · Accepted solution]

You don't need to report the purchase of your condo, and any fees paid when purchasing the property can be claimed against the income you make when you sell/dispose of the property.

[sophiey-cheng]

Thank you.

[AndrewB]

@sophiey-cheng    The answers provided previously are factually correct---you don't need to be concerned with the purchase price.   However, as additional info, you should note that when you sell, you would add some of those amounts to the purchase price, to obtain the ACB, i.e., when filling out Schedule 3, you would add the additional expenses to the purchase price.   Note that not everything on adjustments is an addition.  For example, if seller paid the property taxes for entire, there will be an adjustment on the sheet.  that shouldn't be included---you are just reimbursing the seller for something they paid that you should have.  there may be other examples.  similarly, there might be other items you paid, that weren't handled by the lawyer, like courier fees to send docs, inspection fees, appraisal fee from bank, etc.