Capital Gains - Closing Costs
I just accepted an offer on my condo for $188K. I know most of how to figure CG but the offer was written with $5K going back to the buyer for their closing costs. Can I deduct that 5K as closing costs?
Thank you,
Marc
Your seller concession is a selling cost that is taken into account when you calculate your taxable profit.
Thanks NewKid.
You are very helpful. We appreciate that.
Marc
Answer to my own question:
15% applies to realized gain
25% applies to amount that was depreciated.
Correct?
If I have a rental that I have lived in as a primary residence for over 2 of the last 5 years, then I can sell it for a gain w/o paying cap gains, correct? Can I also depreciate it while it was being used as a rental in 2004? Do I have to pay cap gains or depreciation recapture on the depreciated portion?
You can sell it w/o paying capital gains as long as you have not exempted another property within two years of the sale of it. You can depreciate it while it was a rental. The rest of your question I can only speculate on so I will leave it to the pros.
Marc