Yes, this is treated as a second home. No, the RE taxes and mortgage interest are all that is deductible. Closing costs that you can add to the basis include:
Seller closing costs are made up of several expenses. Here’s a quick breakdown of potential costs and fees:
- Agent commission
- Transfer tax
- Title insurance
- Escrow and closing fees
- Prorated property taxes
- Credits toward closing costs
- Attorney’s fees
What do you mean by, "It is currently under contract." Are you converting it to rental property?
