fredavera
New Member

I made a cash payment to a tenant to induce him to move out of a duplex so it could be sold. I will have a long term capital gain. Can I claim the payment as cost of sale

Duplex was inherited from Mom. She rented to tenant well below market and promised him he would always have an affordable place to live. I feel bound by that promise. The payment is to allow him to purchase a residence with payments not greater than his current rent. I would like to treat the payment as a cost of sale akin to a realtors fee or expenses to prepare for sale.