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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16559
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Im filling out a form it-2663 for NYS real estate tax, what

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I'm filling out a form it-2663 for NYS real estate tax, what are the guidelines for what can and cannot be deducted as "closing costs" and "improvements"?

For instance, can I deduct refinance fees?

Also, if I'm selling the house now, but will be married by the time I'm filing my taxes, should I use the $250K deduction on profit, or the $500K deduction?

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

How are you tonight

MyVirtualCPA :

Closing costs would not include refinance fees. These are fees that are paid when you close on the sale of the house. An example would be sales commissions

MyVirtualCPA :

Also, if you are selling the house and are unmarried at the time of the sale, you would use the $250,000 exclusion not the $500,000 exclusion.

MyVirtualCPA :

Improvements would be any improvements you made to the property, such as a new roof or HVAC system, a kitchen remodel or something similar

Customer:

Thanks! I don't see the place on the IT-2663 to take into account the $250,000 exclusion - where does that go?

MyVirtualCPA :

You're not even required to fill out the form if your house qualifies for the exclusion

MyVirtualCPA :

See this http://www.firstamny.com/doc/805.pdf page 1 of the instructions to the form.

MyVirtualCPA :

Is there anything else that I can assist you with today?

Customer:

Yes, if I pay taxes on the sale of this NY property while living in California, will I need to pay CA taxes on the sale as well?

MyVirtualCPA :

Yes, you will owe tax to California as well, but you will get credit for the tax paid to New York

Megan C and other Tax Specialists are ready to help you
Steve,

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