Rental Property Investor · Cincinnati, OH · Member since 2019 · 23 posts · 2 votes
Hello BP and thanks in advance for any advice you may be willing to share, I know most people on here aren’t a CPA I’m just looking for options!
I paid 300k for a 4 unit in Cincinnati, it only appraised for 270k but the seller was stuck on 300k. Even at that price I still was able to hit all my metrics so I paid the 30k to him in a cashiers check at the time of closing, should this be tax deductible to me?
Hello BP and thanks in advance for any advice you may be willing to share, I know most people on here aren’t a CPA I’m just looking for options!
I paid 300k for a 4 unit in Cincinnati, it only appraised for 270k but the seller was stuck on 300k. Even at that price I still was able to hit all my metrics so I paid the 30k to him in a cashiers check at the time of closing, should this be tax deductible to me?
300k would be your tax basis so all depreciation would be calculated off of 300k. I think you’re asking if the extra 30k is tax deductible which I think the answer is no.