You'll need to sign in or create an account to connect with an expert.
Since
this was purchased as an investment to fix and resell, you add the carrying
costs including mortgage interest, property taxes and rehab expenses to the
basis of the property. When you sell it, all of these costs (and others from
the purchase) become part of the adjusted basis for determining gain or loss on
the property. Property taxes are added to the basis and are not deductible
on Schedule A since they are considered a business expense, not a personal one,
because of the status as an investment property.
Since
this was purchased as an investment to fix and resell, you add the carrying
costs including mortgage interest, property taxes and rehab expenses to the
basis of the property. When you sell it, all of these costs (and others from
the purchase) become part of the adjusted basis for determining gain or loss on
the property. Property taxes are added to the basis and are not deductible
on Schedule A since they are considered a business expense, not a personal one,
because of the status as an investment property.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
washuu
New Member
Deborahmae
New Member
bbowie79
New Member
likesky1010
New Member
JessicaH1024
New Member
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.