Author Topic: Question on real estate tax  (Read 1004 times)

noblewolf

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Question on real estate tax
« on: January 25, 2015, 03:36:37 AM »
I just bought a brand new house last year and the builder paid for all the closing cost because I used their preferred lender.  Can I still claim the closing cost in my tax return? Thank you in advance.

MDM

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Re: Question on real estate tax
« Reply #1 on: January 25, 2015, 11:45:16 AM »
Usually if you don't pay something, you can't deduct the amount paid.  Doesn't seem there would be an exception here, unless you have some document from the IRS that says otherwise.

DoubleDown

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Re: Question on real estate tax
« Reply #2 on: January 26, 2015, 08:32:42 AM »
Actually, some closing costs can be deducted by the buyer even though the seller pays them, such as points on a loan. It's impossible to say which of your costs can be deducted under the vague term "closing costs", but if you go to the IRS website and find the publication on deductible real estate costs, you'll get the answer for all the items on your settlement sheet that you can claim.

MDM

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Re: Question on real estate tax
« Reply #3 on: January 26, 2015, 09:10:00 AM »
Actually, some closing costs can be deducted by the buyer even though the seller pays them, such as points on a loan. It's impossible to say which of your costs can be deducted under the vague term "closing costs", but if you go to the IRS website and find the publication on deductible real estate costs, you'll get the answer for all the items on your settlement sheet that you can claim.
Good point (pun intended).  See http://www.irs.gov/publications/p530/ar02.html.