at asked:


I just sold a investment property, I would like what kind of items I can deduct for ferderal income tax, can I deduct the closing cost for purchase of the property…..etc?

Ashley

Angel asked:


I have two answer.

1) If put back to settlement, it is not taxable. It only reduce your purchase price, when you sell your investment property, you have to pay tax. You only need to pay tax if you get check directly from the builder.

2) Another group think 1) only apply to second home. For realtor buy investment property, even realtor put rebate back into settlement, they still have to claim it as income and pay tax on it.

Which one is true, any website as support document? Thanks.

If the law will be different from state to state? I am in Maryland.

Brittany