Hi,
I really need help.
I am a bit confused here when plugging in numbers from closing doc.
Is it ok to deduct these items?
Prorated interest rate during the closing period
Tax and frontage for 5 months
County taxes 2020-21 2nd half
Thank you.
No, you would not plug these numbers in at all. You cannot get a deduction for them. You will need to hold on to this information and when you go to sell this property, you would add these numbers to the purchase price of the property and that will give you your adjusted basis for determining whether or not there is any capital gain from the sale.
Please clarify where you are trying to plug these numbers and where you are trying to deduct these expenses.
These costs are deductible but can be used to increase the basis of your property to avoid gain on the sale of a property.
Please advise what it is you are trying to accomplish.
Thanks for reply. I purchased the property last year and trying to plug these numbers into general interest / taxes deduction combined with my mortgage interest and taxes. Should I consider plugging these numbers into depreciation?
No, you would not plug these numbers in at all. You cannot get a deduction for them. You will need to hold on to this information and when you go to sell this property, you would add these numbers to the purchase price of the property and that will give you your adjusted basis for determining whether or not there is any capital gain from the sale.