How your closing statement can work for you

Want to save on your tax bill when you buy a rental property?

Then pay close attention to the closing statement.

If you’re smart, you’ll go over the statement’s line items and assign each to one of three categories…

• Business
• Loan acquisition
• Operations

Then you’ll be in a position to consider the best tax strategy for each category.

Want to learn how to use your closing statement as a powerful tax-planning tool?

Read my new article titled Tax Tips: Make the Closing Statement Work for You When Buying Rental Property.

Three ways our fact-filled article can help you:

1. We’ll explain “Basis” basics. To put it simply, your basis is the total cost you pay for the property, including the costs of obtaining and “perfecting” the title. What are the tax implications of your basis? You’ll find out when you read the full article.
2. You’ll learn the ins and outs of loan acquisition. When you buy rental property, Uncle Sam divides your loan costs into two categories: costs you incur to get the loan, and costs, like points, that decrease the mortgage interest rate. We’ll explain all this (in understandable language!) when you read the full article.
3. We’ll tell you how to handle operating items. When you close on your property you might wind up paying all kinds of taxes and fees. (City and town taxes, property insurance premiums, and more.) But if you handle these items as expenses, you may be able to deduct them! We’ll explain this strategy in detail when you read the full article.