Categories

Tuesday, October 08, 2013

Delinquent property taxes

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..

No comments:

Facebook Blogger Plugin: Bloggerized by AllBlogTools.com Enhanced by MyBloggerTricks.com

Post a Comment

Related Posts Plugin for WordPress, Blogger...