If you are with a lender of a new build home and you use incentive money to pay closing cost can you use that as a tax write off?
2007-12-03 05:28:34 · 3 answers · asked by Mark M 1 in Business & Finance ➔ Taxes ➔ United States
No, the only part of the closing costs you can deduct, no matter where the money comes from to pay them, is interest and real estate taxes.
2007-12-03 06:13:46 · answer #1 · answered by Judy 7 · 1⤊ 1⤋
Mark Clarify this:
By "with a lender"do you mean that you are an employee?
By "incentive money" do you mean some portion of your compensation?
And are you talking about the closing costs of a borrower or of your own?
Generally employee business expenses can be deducted if they are an "ordinary and necessary" cost of doing business. So if this is a common ppractice in your area and it is not illegal, it might be deductible based on whether it is sufficnet to overcome the 2% of AGI threshhold and you itmeize deductions.
2007-12-03 18:40:47 · answer #2 · answered by Hank Roitman, EA 4 · 0⤊ 0⤋
Closing costs can be as much as 6% of the mortgage loan amount. Google "closing costs" and get examples. Don't do points. Any by all means stay away from adjustable rates such as 5/1's, and 5/5's...
2016-05-28 00:16:26 · answer #3 · answered by ? 3 · 0⤊ 0⤋