@AmeliesUncle
You should have been depreciating that amount.
How is that possible? They're talking about closing costs incurred and paid when "SELLING" the property.
The below applies to both buyer and seller.
- Closing cost related to acquisition of the property are added to the cost basis of the property. As the seller, it's doubtful you have any costs of this type.
- Closing cost related to acquisition of the loan are amortized (not capitalized) and deducted (not depreciated) over time; generally over the life of the loan. As the seller, any closing costs of this type that were incurred as a part of the sale, are included as a part of the sales expenses and deducted in full in the year of the sale. (Which the program does specifically ask you for.)
