how much did I pay for our house? (for tax purposes)
Ohioguy
numbers on the papers I look at in the paperwork, but I'm not sure which
to use for tax purposes.
For example, the total "bid" we made was $60k, but the papers show
that of that HUD paid $2k themselves in "closing costs", and another
roughly $4k went to the real estate agent as a commission. So that
means that the seller of the home got only about $54k from us.
Even if you include the commission to the realtor, we really only
paid $58k, since HUD paid $2k.
Not sure if I have to include the commission paid to the realtor
and/or the $2k in closing costs that HUD paid itself. Would like to put
a number down less than the full $60k, but not sure if I can. The FHA
guy at closing said that we could use $54k for tax purposes, since that
is what we actually paid HUD for the property, but I'm wondering if the
local city tax folks would really allow that. Our closing papers show
$60k as what we offered, and make no mention of the $2k HUD paid in
closing. The $4k commission is only mentioned on other papers.
Thanks!
SMS
The money out of your pocket is what they'll use, though of course they
can assess it higher or lower based on comparable properties (but in
California it's rare for them to do this unless someone paid an
abnormally low price because they bought it from a friend or relative).
It's not really fair that your taxes are based on this higher amount,
but its the way it is. That's one reason that when you buy a house, if
you can afford it, you should pay the closing costs for the loan
separately and not have the seller include them in the price. They are
deductible from your income tax immediately (rather than over time if
bundled into the loan) and they don't show up as part of the purchase
price. Alas, many people can't afford to pay the closing costs
themselves so they have them included in the sale price, or roll them
into their own loan.
No matter what you paid, you can appeal the assessment if you really
think it'll go down.
What do you get for $60K in Ohio?
Gene S. Berkowitz
says...
You paid $60K for the house.
HUD paid $2K to close the mortgage, NOT to buy the house.
The Seller (HUD) paid the Realtor the $4K commission out of their
earnings (your $60K).
No matter how you slice it, *you* paid $60K, and that's what you
should declare.
--Gene
SMS
> No matter how you slice it, *you* paid $60K, and that's what you
> should declare.
I don't think that there is anything to declare here. None of the
purchase price is deductible, it's the property taxes he's talking
about. The county or city will determine the property taxes based on the
purchase price that was recorded.
The Henchman
"Ohioguy" <no...@none.net> wrote in message
news:w3Wgn.18655$OJ6....@newsfe22.iad...
I assummed you are talking about claiming this purchase on your income tax
return to qualify for tax refunds or credits, related to this house
purchase. Is this a correct assumption?
The closing papers show offered?? The closing papers should say purchase
price. The closing papers come from your lawyer do they not? Offer papers
come from your real estate agent, if you used one in your case.
Out of curiosity is Ohioguy allowed to claim any expenses such as title/lien
insurance, home inspection, real estate lawyer fees, township tax adjustment
etc that he paid out of pocket to complete the purchase on his federal
income tax filing?
MAS
> What do you get for $60K in Ohio?
I have a 1300 sq ft ranch on 1 acre, with a 2-car garage, in the
suburbs, assessed fairly IMO at $94,000. While our weather isn't
anything to crow about, the cost of living is decent in my area
(northwest Ohio)
Marsha
Ohioguy
A 2,100 square foot quad level with basement, 3 bedrooms, 2.5 baths,
attached garage. Plus, back yard is 5x our present size, fenced, &
school district is one of the best in the area. (we're moving from a D-
rated to A rated) Doesn't hurt that Caterpillar announced a new
facility with 600 jobs 1 mile away just 3 weeks after we signed for the
place.
SMS
OMG. That's about $1.2M in my town (also with good schools), but
slightly lower square feet and no basement on < 7000 square foot lot.
Ohioguy
CHARDON, OH �
A guy in Ohio has built himself a place where he can really chill out: a
625-square-foot house made of snow and equipped with cable television
and a flat screen TV.
Jim Grey started his cold construction project at the beginning of
January when a storm left a load of snow in his family�s yard in the
Cleveland suburb of Chardon. He kept building and building, and now has
a snow structure that spans four rooms with 6-foot ceilings, including
the entertainment room with the TV, a surround-sound system and strobe
lights.
Grey�s friend, A.J. Fay, says it was �cool� watching a little pile of
snow grow into a full-size igloo.
Grey says his work isn�t done. He�s now adding a guest bedroom in case
of visitors.
James
> <and then there are people who build a 625 square foot house for free..>
>
>
> A guy in Ohio has built himself a place where he can really chill out: a
> 625-square-foot house made of snow and equipped with cable television
> and a flat screen TV.
>
> Jim Grey started his cold construction project at the beginning of
> Cleveland suburb of Chardon. He kept building and building, and now has
> a snow structure that spans four rooms with 6-foot ceilings, including
> the entertainment room with the TV, a surround-sound system and strobe
> lights.
>
> snow grow into a full-size igloo.
>
> of visitors.
Thats nothing...check out the ice hotel in Quebec
http://www.icehotel-canada.com/
sf
Use the H&R Block Tax Software (I am not associated with the firm in
any way). It will help you with your questions. If you decide to buy
the program, it will be a tax deduction on next year's form.
--
I love cooking with wine.
Sometimes I even put it in the food.