State Specific Question About: COLORADO (CO)

For those of you who do your own taxes, when you purchase a rental property with a mortgage, only certain expenses for the purchase of that property and execution of the mortgage are deductible, do you know what those are specifically? It seems the vast majority of the expenses have to be added to the cost basis of the property and depreciated over the property depreciation schedule.

I got this information from one of the latest editions of Nolo "Every Landlord's Tax Deduction Guide" book. The book is a bit vague and even ambiguous in areas as to exactly what is deductible.

For instance, the appraisal and inspection fees cannot be deducted in the current year (surprise!). They have to be added to the cost basis. In one spot in the book it states that points on the loan are not deductible then states in another area that certain points are deductible.

By any chance, is anyone aware of a document that explicitly uses a sample mortgage document and shows line-by-line what is typically deductible versus what gets added to the basis?

"It seems the vast majority of the expenses have to be added to the cost basis of the property and depreciated over the property depreciation schedule."