Profile picture for Mang66

Need help!

Trying to sell my rental property at Maryland. I have 2 questions

Question 1: If I pay for the buyer's closing cost, am I entitled to deduct that amount from my capital gain?

Question 2: Since I am no longer a Maryland resident, I have to pay an additional  7% tax for nonresident. Maryland law says if I spent 2 years in that property in the last 5 years, I can get an exemption but I do not meet that criteria, should I still apply for the exemption knowing that I will be denied?

Can anybody help me out?
  • December 05 2012 - US
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Answers (1)

Profile picture for wetdawgs
The items you can add to the cost basis of your rental are described in the irs.gov section on rental properties.   On a personal residence selling costs can be added to the cost basis, for a rental property the rules are much more complex because of the rental deductions and depreciation over the years.   It is best to work with a tax professional to get the detailed answer.

For #2 - ask your tax professional.    I wouldn't waste my time or money filing when not eligible.   Why do you ask?




  • December 05 2012
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