As tax time is approaching, you may be wondering which closing costs you can deduct against your 2011 income if you bought a property in 2011. It turns out that is a pretty complicated question. Many of the closing costs that you would think you could expense immediately have to be added to the basis of the property and depreciated over 27.5 years unfortunately.
For a line-by-line breakdown of what is presently deductible from your HUD-1 costs check out this website: http://www.minassiancpa.com/articles/realestate/closingcosts.html
Good luck!
Hello,
ReplyDeleteThe closing costs can be quite an extensive list. From fees for copying the seemingly thousands of copies of papers for closing to the more expensive homeowner insurance, these costs can add up. Of course, the sellers have their own fees which have to be paid as well. But with the shape of the economy and the real estate market today, this is the "age of seller concessions."
Closing Costs on a House