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Subject Author Date
Mortgage Application Fee/Home Inspection Fee (for "Failed" Home) Jules Vide 02-02-2007
Posted by Jules Vide on February 2, 2007, 8:15 pm
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 Our accountant said that a $350. mortgage application fee
and $500. spent on a home inspection that turned up a defect
the seller refused to remediate are not allowed as
deductions. This accountant pays little attention to our
questions, and we're considering going elsewhere. Anyway,
since this mortgage fee and home inspection cost were
incurred in anticipation of an investment (property), I
don't see why they can't be itemized as losses.

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Posted by Bill Brown on February 3, 2007, 2:33 am
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> Our accountant said that a $350. mortgage application fee
> and $500. spent on a home inspection that turned up a defect
> the seller refused to remediate are not allowed as
> deductions. This accountant pays little attention to our
> questions, and we're considering going elsewhere. Anyway,
> since this mortgage fee and home inspection cost were
> incurred in anticipation of an investment (property), I
> don't see why they can't be itemized as losses.

Was it the potential purchase of a home (your personal
residence) or of rental real estate? If the former, your
accountant is correct.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Stuart A. Bronstein on February 4, 2007, 2:24 am
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>> Our accountant said that a $350. mortgage application fee
>> and $500. spent on a home inspection that turned up a defect
>> the seller refused to remediate are not allowed as
>> deductions. This accountant pays little attention to our
>> questions, and we're considering going elsewhere. Anyway,
>> since this mortgage fee and home inspection cost were
>> incurred in anticipation of an investment (property), I
>> don't see why they can't be itemized as losses.

> Was it the potential purchase of a home (your personal
> residence) or of rental real estate? If the former, your
> accountant is correct.

But then if they go on to buy another home, can they
capitalize the $350 and add it to the basis of the new home?

Stu

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on February 5, 2007, 1:31 am
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Stuart A. Bronstein wrote:

>>> Our accountant said that a $350. mortgage application fee
>>> and $500. spent on a home inspection that turned up a defect
>>> the seller refused to remediate are not allowed as
>>> deductions. This accountant pays little attention to our
>>> questions, and we're considering going elsewhere. Anyway,
>>> since this mortgage fee and home inspection cost were
>>> incurred in anticipation of an investment (property), I
>>> don't see why they can't be itemized as losses.

>> Was it the potential purchase of a home (your personal
>> residence) or of rental real estate? If the former, your
>> accountant is correct.

> But then if they go on to buy another home, can they
> capitalize the $350 and add it to the basis of the new home?

No, because the 350$ has nothing to do with the cost of a
house; only pertains to obtaining a mortgage.

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Seth Breidbart on February 3, 2007, 2:33 am
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> Our accountant said that a $350. mortgage application fee
> and $500. spent on a home inspection that turned up a defect
> the seller refused to remediate are not allowed as
> deductions. This accountant pays little attention to our
> questions, and we're considering going elsewhere. Anyway,
> since this mortgage fee and home inspection cost were
> incurred in anticipation of an investment (property), I
> don't see why they can't be itemized as losses.

Were you planning on buying the home to live in? (That
seems likely based on your calling it a home, not a house.)
In that case, the fees are personal and not deductible.

If you were buying an investment property (to rent out, or
just to flip for a profit) then the expenses should be
deductible. Do you have evidence that you're in the real
estate business?

Seth

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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