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When I sold my home I paid off the City of buckeye CFD, can that be counted as part of my clossing cost?
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When I sold my home I paid off the City of buckeye CFD, can that be counted as part of my clossing cost?
Please explain what the payment was for.
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When I sold my home I paid off the City of buckeye CFD, can that be counted as part of my clossing cost?
When selling our home the buyer asked that we pay off "City of buckeye assessment to Watson road". As a brand new community it was a fee that came with the house.
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When I sold my home I paid off the City of buckeye CFD, can that be counted as part of my clossing cost?
Further clarification... It's full name is Watson Road Community Facilities District and was a Leon on the lot for developing/expanding wastewater plant and collection trunk. Initial balance of $5900, payments to be made semianually totalling about $500 a year. It was not past due but remaining balance was paid off.
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When I sold my home I paid off the City of buckeye CFD, can that be counted as part of my clossing cost?
Add the payment to your basis in the property for determining your gain or loss on the sale.
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When I sold my home I paid off the City of buckeye CFD, can that be counted as part of my clossing cost?
I assume the assessment was due or past due.
In most cases assessments for local benefits are not tax deductible. Please follow this link and review IRS Pub 530 for a discussion of deductible and non-deductible special assessments. https://www.irs.gov/publications/p530/ar02.html#en_US_2016_publink100011838
If the assessment is not deductible as a form of property tax, the assessment you paid gets added to your basis in the property for purposes of calculating your gain/loss on the sale.
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