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Posted by Phil Marti on September 8, 2008, 1:48 pm
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>> You'll have a short-term capital gain. Note that purchase and sale
>> expenses
>> are considered when determining the amount of gain, so your taxable gain
>> will likely not be exactly $100,000. See IRS Publications 550 and 551.
>
> Even transfer taxes are added to the cost basis, right?
Yes. Costs of acquiring or disposing of the property, including transfer
taxes, mortgage stamps, etc. all reduce gain. What doesn't are costs solely
related to the mortgage, for example, appraisals and lender title insurance.
You eat those on personal-use property.
--
Phil Marti
Clarksburg, MD
--
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