<Ul> <Li> Purchase costs (title & escrow fees, broker commissions, shipping, sales tax, etc .) </Li> <Li> Improvements (rehabilitation expenses & substantial repairs) </Li> <Li> Legal fees (to defend or to perfect title to the property, zoning costs, etc .) </Li> <Li> Selling costs (title & escrow fees, broker commissions, shipping, transfer fees, etc .) </Li> </Ul> <Li> Purchase costs (title & escrow fees, broker commissions, shipping, sales tax, etc .) </Li> <Li> Improvements (rehabilitation expenses & substantial repairs) </Li> <Li> Legal fees (to defend or to perfect title to the property, zoning costs, etc .) </Li>

Allowable depreciation is deducted from a taxpayer’s initial basis in calculating the adjusted basis