When calculating basis, should I include delinquent property taxes left unpaid by the seller. I believe I should include points and legal fees, is that correct.
Answer :
1 : I guess it depends; delinquent taxes are unpaid taxes that were
imposed on the seller for an earlier tax year. If you agree to pay
delinquent taxes when you buy your home, you cannot deduct them. You
treat them as part of the cost of your home as part of your home basis, I
mean. In general, you can deduct real estate taxes imposed on you. You
must have paid them either at settlement or closing, or to a taxing
authority (either directly or through an escrow account) during the
year.
2 : Legal fees (including title search/preparing documents) increase your basis;The IRS allows mortgage points to be deducted from your taxes. Depending on the specifics of your new mortgage, you may be able to deduct all of the points at once, or over the life of the loan. The IRS...Read More..
2 : Legal fees (including title search/preparing documents) increase your basis;The IRS allows mortgage points to be deducted from your taxes. Depending on the specifics of your new mortgage, you may be able to deduct all of the points at once, or over the life of the loan. The IRS...Read More..
No comments:
Post a Comment