Today Gene from Centennial, CO wants to know “I am in the process of purchasing a second home for the purpose of renting it.
buy zithromax online www.mabvi.org/wp-content/languages/new/usa/zithromax.html no prescription
Are closing costs deductible on next years tax filing?
https://www.ncil4rehab.com/wp-content/languages/new/wellbutrin.html
”
Hi Gene,
You’re in luck!
Real estate is my specialty.
In general, closing costs are typically NOT deductible. They are added to the cost of the property and reduce your profit when you sell the property.
buy symbicort online www.mabvi.org/wp-content/languages/new/usa/symbicort.html no prescription
The only parts of the costs that ARE deductible in a purchase of a rental residence property are:
Property taxes paid or credited (NOT property tax reserves for lender’s impound accounts)
Points are not deductible all at once. They are deducted over the life of the loan. To get the current year’s deduction, divide the number of months in the current tax year by the total number of months in the loan’s life.
https://www.ncil4rehab.com/wp-content/languages/new/strattera.html
i.e. 6 months/300 months. (25 years)
All the other costs on that HUD statement pretty much need to be added to the value of the property.
Look out for things like:
Insurance (you often have to prepay a year’s premium) – that is deductible.
Check to buyer – that’s your own money.
https://www.ncil4rehab.com/wp-content/languages/new/amitriptyline.html
Don’t add it to the costs.
Certain credits – sometimes the seller will rebate some money back to buyer – that reduces the costs
Naturally, you’ll find answers to all your questions about rental properties and other tax information, where? At TaxMama.com
- Ask TaxMama :: Where taxes are fun and answers are free
File Download (1:47 min / 0.4 MB)
