Where to credit seller paid closing costs (I'm the purchaser)
Okay, I bought a new rental property and had the seller pay 2% of closing costs (max allowed by my lender). Under the new Closing Disclosure form (no longer the HUD form), it shows nothing specifically paid by the seller, it only shows up in the "Calculating Cash to Close" and "Summaries of Transactions" as the "Seller Credits".
So, for the purposes of calculating the items for "Amortization over the life of the loan" (30 yrs) vs "Depreciation over life of the structure" (27.5 yrs), where do I deduct the Seller Credits? Do I get to pick? Does it just reduce the overall cost of the property (thus only a portion gets depreciated, as a portion would go towards the land)?