Classification of costs found on closing statement for investment property purchases

Facebooktwitterpinterestlinkedinyoutubeinstagram
Sandy Botkin
Follow Me

Taxbot, deductr, deductor, deducter, taxes, business taxes, how to reduce my business taxes, business tax write offs, tax deductions, car tax deductions, sandy botkin, irs, irs audit, CPA, mobile expense tracker, mobile mileage tracker, investment property, flipping homes, investment homes, home repair, deducting home repairs, home tax write offsPartII: Treat of items on closing statement for investment property:
1. Cost of obtaining title: These are added to basis. Examples would be Commissions, Legal fees, title search, title policy charges, transfer taxes etc.
2. Costs incident to Purchase: These are deductible. They include prorated real estate taxes, condo fees, utilities and hazard insurance.
3. Costs incident to a loan: These are amortizable over the life of the loan. Examples would be: lender required legal fees,appraisal fees,mortgage broker’s commissions,pest inspection,credit reports,loan fees and mortgage insurance. Even points paid on loans to acquire investment property is written off over the life of the loan.

Facebooktwitterpinterestlinkedinmail
%d bloggers like this: