Updated almost 7 years ago on . Most recent reply
Double Closing vs. Assignment Taxes
So I am trying to figure out the best way to sell a property to an end buyer.
I signed a contract to buy a single family home from my grandmother in March for an agreed upon price (120k). I have a closing date on that contract listed for December of this year, 2019. Which, to the best of my knowledge gives me the right to sell or list the property
Since signing the agreement, I have spent my own money to renovate the property (16k).
My question is about the taxes.
Ideally, I’d like to assign the contract to an end buyer without having to get a mortgage or fork up the $120k.
My question is- if I only assign the contract and never take legal possession of the property, can I deduct my renovation cost from my profits for tax purposes? Or must I take possession of the property in order to deduct my renovation cost?
Hope this makes sense and thank you for any help