New to Real Estate · Memphis, TN · Member since 2020 · 12 posts · 9 votes
Hi All - Looking to buy an investment property soon and will likely close in the last week of December or first week of January. Are there any tax or other benefits to me and my business by closing on the home at the end of 2022 (Dec 30) vs the beginning of 2023 (Jan 1)? Thanks!
I would definitely ask your accountant to get an exact answer, but to me, I would look at my tax situation this year and see if the extra costs will help any this year or if it would be more beneficial to include in the next year. If you believe having an extra deduction this year would be helpful then I would go with sooner rather than later!
Go with January if it is a conventional loan. Loans are paid in arrears and you skip the current and next month. If you close at the end of December you skip January but pay in February. If you close in January you skip January and February. I always try to close on the 1st which gives me more time to rent the property before the first payment is due.