Urgent Help Needed - Tax Question
The accountant who suppose to do our taxes had to leave the town last week and just called me that he will not be back for a while.
I think I can do taxes myself, but there is a question I have in regards to properties we have.
We have our home where we pay home equity mortgage. So I can include property taxes on the tax-return.
We have 2 properties that we purchased with cash and fixed with cash. Cash is money from our equity loan from main house. None of them were rented. We paid 100,000 for 1st and 65,000 (purchase) and 30,000 (repairing) for 2nd. Questions that I have:
1. Do I include any closign cost to my deductions for 2 properties?
2. Can I include repairing cost to deductions even the property wasnt rented out?
3. Can I included real estate taxes from 2 homes to deductions?
Please, if you know any book or publication I can read in regards to this situation, let me know.
Thank you!
Yulia
Quote:We have 2 properties that we purchased with cash and fixed with cash. Cash is money from our equity loan from main house. None of them were rented. We paid 100,000 for 1st and 65,000 (purchase) and 30,000 (repairing) for 2nd. Questions that I have:
1. Do I include any closign cost to my deductions for 2 properties?No. Closing costs are adjustments to your basis.
Quote:2. Can I include repairing cost to deductions even the property wasnt rented out?No. Repair and rehab costs are adjustments to your basis.
Quote:3. Can I included real estate taxes from 2 homes to deductions?Probably not. I assume you are planning to flip these properties for profit. In this case, property taxes are included in your holding costs which increase your cost of goods sold (adjustment to your basis).
I suspect it would be best for you to request an automatic four month extension to file your federal and state income tax returns. Either wait for your CPA to return to do the returns, or, find another CPA to perform this task for you.