> 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.
>
Use the H&R Block Tax Software (I am not associated with the firm in
any way). It will help you with your questions. If you decide to buy
the program, it will be a tax deduction on next year's form.
--
I love cooking with wine.
Sometimes I even put it in the food.
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> 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.
>