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Richard
Richard, Tax Attorney
Category: Finance
Satisfied Customers: 54333
Experience:  29 years of experience as a tax, real estate, and business attorney.
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Are the transfer taxes shown on real estate settlement

Customer Question

Are the transfer taxes shown on real estate settlement statement taxable or deductible (as the
case may be.?)
Submitted: 11 months ago.
Category: Finance
Expert:  Richard replied 11 months ago.

Good evening. My name is ***** ***** I look forward to helping you.

Pursuant to IRS Publication, real estate transfer taxes and deed stamps are not deductible on your Schedule A if this is the sale of your primary residence or investment property. If this is rental property, these would be deductible. . https://www.irs.gov/taxtopics/tc503.html . But, to the extent the seller pays the these taxes, they can be offset against the selling price to determine gain on sale. And, to the extent paid by buyer, they can be added to the buyer's basis.

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