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sale of rental property

Forum|Forum|4 years ago
February 8, 2022
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I sold a rental property mid year 2021. This rental generated some income for the first 6 months . On the settlement statement, I had 2 debits in section named "deposit, credit, debit" , one debit for "service credit" and one debit for "seller concessions". Can I deduct those debits from my rental income from this property on Schedule E?

Also, I had "additional settlement charges" on the settlement statement : "lien fee search" and "estoppel fees". Are those deductible in some way? thank you

Best answer by Mike9241

I sold a rental property mid year 2021. This rental generated some income for the first 6 months . On the settlement statement, I had 2 debits in section named "deposit, credit, debit" , one debit for "service credit" and one debit for "seller concessions".

you have to determine what these are for? service credit could be in regard to a rental expense such as utilities. then it goes on schedule E

seller concessions could be to defray the buyer closing costs which would be a cost of sale

Also, I had "additional settlement charges" on the settlement statement : "lien fee search" and "estoppel fees". Are those deductible in some way? thank you

the lien fee search is to make your there are no liens on the property. i would treat them as a selling expense,

not sure about the estoppel fee, if you had an attorney ask them.

M

Mike9241Answer

I sold a rental property mid year 2021. This rental generated some income for the first 6 months . On the settlement statement, I had 2 debits in section named "deposit, credit, debit" , one debit for "service credit" and one debit for "seller concessions".

you have to determine what these are for? service credit could be in regard to a rental expense such as utilities. then it goes on schedule E

seller concessions could be to defray the buyer closing costs which would be a cost of sale

Also, I had "additional settlement charges" on the settlement statement : "lien fee search" and "estoppel fees". Are those deductible in some way? thank you

the lien fee search is to make your there are no liens on the property. i would treat them as a selling expense,

not sure about the estoppel fee, if you had an attorney ask them.