I’m hoping this forum can help me with categorizing certain costs associated with the purchase of a property. I am logging the down payment under "capital expenses - new acquisitions’ and those closing costs that can be added to the basis under “capital expenses - closing or loan costs.” For those costs that can be deducted as expenses I’m logging them under their normal expense category. What do I do for those costs that are not added to the basis nor deductible as expenses, but rather “amortized” over the life of the loan? Examples are appraisal fees, credit report fee, food certificates, processing fees, underwriting fees, etc. If I’m missing something or if I’m off base, please let me know. Any help folks can give would be appreciated!
I put the fees you mentioned appraisal fees, processing fees, credit report fee as a “Capital Expense → Loan Costs” because it is part of the “Total Loan Charges” from my lender as listed on the “Master Statement”.