Hi,
Just sold a residential rental property (single home),
where we gave the buyer a $5000 credit towards closing.
I know that closing costs aren't usually considered tax deductions, but can be applied as "selling costs" (similar to sales commissions), and in effect lowers the selling price which ends up lowering the capital gains tax you pay.
Can anyone tell me if the $5000 credit would apply here ?
Thanks.
Just sold a residential rental property (single home),
where we gave the buyer a $5000 credit towards closing.
I know that closing costs aren't usually considered tax deductions, but can be applied as "selling costs" (similar to sales commissions), and in effect lowers the selling price which ends up lowering the capital gains tax you pay.
Can anyone tell me if the $5000 credit would apply here ?
Thanks.