In 2020 I have purchased a rental property. Where and how do I report expenses associated with the purchase? Legal fees, Land transfer, Disbursement fee?
In 2020 I have purchased a rental property. Where and how do I report expenses associated with the purchase? Legal fees, Land transfer, Disbursement fee?
In 2020 I have purchased a rental property. Where and how do I report expenses associated with the purchase? Legal fees, Land transfer, Disbursement fee?
Since these fees are associated with the purchase of the property and not the rental activity, they are added to the cost of the property, and the new amount is called Adjusted Base Cost (ABC)= purchase price + fees and outlays
The ABC is your "addition" value on the rental income statement.
Check this link to help you with the understanding of the ABC:
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