Net Proceeds of Second home

[Mcb050032]

On the Seller's statement there are the following debits below. Which of these items reduce the Selling Price? Are all items selling expenses except the property taxes?

Financial Consideration

Seller Credit: 1,243

Proration/Adjiustments

County Taxes $2,171

Commissions

Listing Agent  $11,025

Selling Agent $11,025

Title & Escrow Charges

Title RE Closing Fee(Seller) $200

Title Tax Certificate $13.50

Title Owners Title Insurance $1,980

Miscellaneous

HOA CIC Documents $65

HOA Status Letter $354

Proceeds Disbursement $452,676

Real Estate Admin Fee $395

Temporary Rate Buydown $8,757

[JotikaT2]

That is correct.  Most of the expenses listed above except for the property taxes would be considered selling expenses.

The remaining expenses which would be added to the basis would include the title tax certificate, title insurance, and any legal or recording fees.

Please see this link about rental real estate for a breakdown of the terminology.

[Mike9241]

unless the property is a rental HOA costs are personal - not deductible as not selling expenses or anything else. also real estate admin fee is probably a personal expense. 

I'm not sure why the temporary rate buydown would be a charge unless you are doing it for the buyer. 

[Mcb050032]

Thanks for the info. This was a rental property so I assume it is okay to reduce selling price by HOA fees? Is the RE Admin fee still not included? Also, the rate buydown was seller paid.

[Mcb050032]

As a rental property, I assume it is safe to reduce the selling price by the HOA fees, Rate Buy-down (seller paid), and RE Admin Fee?

Thanks!

[JotikaT2]

The HOA fees would be a deduction against your rental income on your Schedule E since those are a part of maintaining the property and would be incurred regardless of a sale or not.  They would not be a reduction to your sales proceeds on the sale of the rental property.

If the real estate administration fees were part of your regular rental activity, then those expenses would also be offset on Schedule E.  If they were part of the required fees to sell the rental property, then they could be used as part of your selling expenses.