Real Estate - Transfer Tax, write off?

Question

I'm thinking of Purchasing a home in Oakland, CA and I'm told the transfer tax will cost me $7000. Does anyone know if I can write this off on my tax return this year? Thanks in advance

Answer 1

The transfer tax is not a deductible expense, sorry to say. You may certainly add this expense to your 'cost basis' for any future sale/gain on this property, but you cannot deduct this payment as an income tax deduction.

Answer 2

Try these links so you can research what is deductible

IRS publication on Home interest deduction: http://www.irs.gov/publications/p936/ar02.html#d0e1835 and or: http://www.irs.gov/faqs/faq3-6.html
IRS: Tax information when buying a home: http://www.irs.gov/publications/p530/ix01.html
IRS: Deductible costs when purchasing real property:
http://www.irs.gov/publications/p551/ar02.html#d0e2000
IRS: 3.6 Itemized Deductions/Standard Deductions: 6. Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses): http://www.irs.gov/faqs/faq3-6.html

Be sure to work with an accepted by IRS tax preparer since the field of taxes is like learning Swahili

Best of luck

Answer 3

Typically sellers pay the transfer tax in California so you should investigate as to why you the buyer, are paying it.

That said, as the buyer, I don't know if you write it off or add to the basis.

Answer 4

you are able to deduct the interest for tax purposes in case you're paying the interest. in case you're the two paying, each and each of you are able to deduct your proportion. you are able to not the two deduct the full volume of interest, basically your proportion of it. the perfect attitude is to calculate the tax return with each and each option, then opt for the technique that helps your joint taxes to be smallest. an identical applies to materials tax.