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There is no taxable income just because you purchase a property.
All purchase costs are capitalized and and that is your basis.
You will need to keep all records.
When eventually the property will be sold - you will need to calculate the gain as (selling price) MINUS (adjusted basis)
As you purchase for cash - there is no mortgage interest deduction, but you still will pay real estate taxes which are deducted if you itemize.Also because you are living in Texas and there is no income tax in this state - if you itemize - you deduct sales tax. Thus if you purchase any building materials for home improvements - sales taxes on building materials are deductible..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you will all tax related issues.