Can property taxes paid at closing be considered a selling expense when selling a rental property?
Hello,
I understand that I am allowed to deduct from the sales price various selling expenses that includes the following list:
- advertising
- appraisal fees
- attorney fees
- closing fees
- document preparation fees
- escrow fees
- mortgage satisfaction fees
- notary fees
- points paid by the seller to obtain financing for the buyer
- real estate broker's commission
- recording fees (if paid by the seller)
- costs of removing title clouds
- settlement fees
- title search fees
- transfer or stamp taxes charged by city, county, or state governments.
Though not listed, can I also deduct any prorated property taxes paid at closing?
Typically, when a property is sold, the seller pays any property taxes due up to the closing date.
I have read online that I can consider the paid prorated property taxes as selling expense versus treating it as a rental expense but just wanted confirmation.
Thanks in advance.