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  1. During the sale of a rental property some expenses such as sales commissions, legal fees, and bank fees are generally incurred. While I have seen some documentation suggesting that these can be applied against the selling price to reduce the capital gains, I am curious whether the option to instead apply them against the annual income from the property also exists? These were, after all, expenses incurred as a result of running the rental property business. I am only looking for information on whether there is a strict requirement to apply these costs against either the sales price or against the rental income? Is there a law that directs where these must be applied, or is the choice optional?
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