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Investors & landlords
Unless you were actively seeking to rent in December 2020, you can't take any expenses. Closing costs are added to the basis of the property, they are not deductible.
However, you can reduce the selling price of the rental property by the amount of the sales expenses, including the realtor fees. Doing this will either reduce your capital gains or increase your loss on the property, depending on your individual circumstance- either way it may reduce the amount of taxes to be paid on the sale. TurboTax will make these calculations for you, you just need to enter the data.
Sales Expenses for selling your property include:
- Sales commissions
- Advertising Expenses
- Legal Fees
- Broker Fees
- Transfer taxes
March 14, 2021
1:20 PM