Can I include the recapture fee paid to municipality as seller cost in the calculation of capital gains on the sale of an affordable housing unit?

lilo461 · ‎April 1, 2020

Unit was sold for $169,900 (FMV). The maximum resale price is $102,364 (MRP) according to the municipality. Recapture fee of $53,965.20 was paid to municipality based on the above. I do not think I should include the recapture fee as part of the capital gains since it went to my municipality.

ThomasM125 · ‎April 1, 2020

Yes, you can deduct the recapture fee as a cost of the sale.

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lilo461 · ‎April 1, 2020

Thank you ThomasM125!

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Can I include the recapture fee paid to municipality as seller cost in the calculation of capital gains on the sale of an affordable housing unit?