how much did I pay for our house? (for tax purposes)

 

   We just bought a HUD owned home at auction.  There are many different
numbers on the papers I look at in the paperwork, but I'm not sure which
to use for tax purposes.

   For example, the total "bid" we made was $60k, but the papers show
that of that HUD paid $2k themselves in "closing costs", and another
roughly $4k went to the real estate agent as a commission.  So that
means that the seller of the home got only about $54k from us.

   Even if you include the commission to the realtor, we really only
paid $58k, since HUD paid $2k.

   Not sure if I have to include the commission paid to the realtor
and/or the $2k in closing costs that HUD paid itself.  Would like to put
a number down less than the full $60k, but not sure if I can.  The FHA
guy at closing said that we could use $54k for tax purposes, since that
is what we actually paid HUD for the property, but I'm wondering if the
local city tax folks would really allow that.  Our closing papers show
$60k as what we offered, and make no mention of the $2k HUD paid in
closing.  The $4k commission is only mentioned on other papers.

                                                   Thanks!

 

says...

You paid $60K for the house.
HUD paid $2K to close the mortgage, NOT to buy the house.
The Seller (HUD) paid the Realtor the $4K commission out of their
earnings (your $60K).

No matter how you slice it, *you* paid $60K, and that's what you
should declare.

--Gene

 




I assummed you are talking about claiming this purchase on your income tax
return to qualify for tax refunds or credits, related to this house
purchase.   Is this a correct assumption?

The closing papers show offered??  The closing papers should say purchase
price.  The closing papers come from your lawyer do they not?  Offer papers
come from your real estate agent, if you used one in your case.

Out of curiosity is Ohioguy allowed to claim any expenses such as title/lien
insurance, home inspection, real estate lawyer fees, township tax adjustment
etc that he paid out of pocket to complete the purchase on his federal
income tax filing?

 

<and then there are people who build a 625 square foot house for free..>

CHARDON, OH —

A guy in Ohio has built himself a place where he can really chill out: a
625-square-foot house made of snow and equipped with cable television
and a flat screen TV.

Jim Grey started his cold construction project at the beginning of
January when a storm left a load of snow in his family’s yard in the
Cleveland suburb of Chardon. He kept building and building, and now has
a snow structure that spans four rooms with 6-foot ceilings, including
the entertainment room with the TV, a surround-sound system and strobe
lights.

Grey’s friend, A.J. Fay, says it was “cool” watching a little pile of
snow grow into a full-size igloo.

Grey says his work isn’t done. He’s now adding a guest bedroom in case
of visitors.

 


Thats nothing...check out the ice hotel in Quebec
http://www.icehotel-canada.com/