capitalized closing costs

capitalized closing costs

A taxpayer may write off as deductible expenses some of the closing costs associated with the purchase of property or the acquisition of a loan.Others must be deducted proportionately over the term of the loan,so that if the loan is for 30 years,1/30 may be deducted each year. Still others must be capitalized, meaning treated as additional money spent on the purchase price when it comes time to calculate the gain on a later sale of the same property.

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