Treat tax bills as a repair?

Treat tax bills as a repair?

Member since 2023 · 5 posts · 2 votes

​Hi yall, should I consider tax bills, closing costs, and other encumbrances as a repair when doing "arv - repairs" or do I include it into the purchase price, once I got the property under contract? I appreciate your response in advance!

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  • Melanie P.Pro Member
    Rental Property Investor · Member since 2023 · 1k+ posts · 922 votes
    2y

    Tax bills should be looked at as carrying cost. They are most comparable to the interest on your loan because they will be prorated to both your purchase and sale dates.

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