I purchase a home in April it was a short sale. I had to pay a loss mitigation fee which I was advised it could be deducted on my taxes, however I have no idea where to claim this deduction can you please advise?
You'll need to sign in or create an account to connect with an expert.
If the home was a personal residence, you can not deduct it, but you can add it to the basis. This will help reduce your gain when you sell it.
If the home was purchased as a rental property, you can deduct the fee as an addition to the cost when you set it up for depreciation.
If the home was a personal residence, you can not deduct it, but you can add it to the basis. This will help reduce your gain when you sell it.
If the home was purchased as a rental property, you can deduct the fee as an addition to the cost when you set it up for depreciation.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
J3SS1CA
New Member
Doony
Level 2
Doony
Level 2
njkratos
New Member
TaxPayer-2024
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.