Writing off "cash on top" of a financed duplex purchase
Hi there!
Just bought my first property. But in the competitive Los Angeles market, I had to put up additional cash on top of the deal in order to have my loan taken seriously. Anyone in SOCAL familiar with how to write that off on our taxes? The money was transferred digitally, but not part of the loan.
Thank you!
Most Popular Reply
Bill B.
#3 1031 Exchanges Contributor
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
If you’re talking about paying over asking or having a larger downpayment: Those aren’t expenses. Those funds just get added to your cost basis. This allows for a larger annual depreciation and lower capital gains if you ever sell.
As mentioned above: if you paid some sort of “bribe/incentive” to the seller you’ll need the receipiant’s social security number and they’ll need to declare the income.