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Path: utzoo!decvax!tektronix!uw-beaver!cornell!batcomputer!hurf
From: hurf@batcomputer.UUCP
Newsgroups: net.invest,net.taxes
Subject: Re: Money from refinancing
Message-ID: <1179@batcomputer.TN.CORNELL.EDU>
Date: Tue, 7-Oct-86 09:47:15 EDT
Article-I.D.: batcompu.1179
Posted: Tue Oct  7 09:47:15 1986
Date-Received: Wed, 8-Oct-86 04:12:15 EDT
References: <8@oliveb.UUCP> <3788@nsc.UUCP> <840@cuuxb.UUCP>
Reply-To: hurf@batcomputer.UUCP (Hurf Sheldon)
Distribution: na
Organization: Theory Center, Cornell University, Ithaca NY
Lines: 33
Keywords: IRS (I Retroactivly Steal)

In article <840@cuuxb.UUCP> rsb@cuuxb.UUCP (Richard S. Brown) writes:
>Does anyone have ANY information (for this year and beyond) for the
>following situation:
>
>Jack buy a house from Ed for FULL price but they agree that Ed will
>pay the 3 points that Jack's bank will charge him for the loan.
>The purpose, of course, is this save Jack some "up front" money.
>
>Can Ed write off the points that HE paid Jack's bank as some sort
>of expense (of selling the house)?
>
>When Jack sells, should he pay the points of the person HE sells to?
>
>	Rich Brown
>	Downers Grove, IL
>	cuuxb!rsb

 The cost of sale goes against the 'basis' of your real estate
 if it is a residential sale. At whatever time Ed sold a house
 & did not buy another same or more expensive house he would
 either have to take his one time exclusion or ante up taxes
 on capital gain. For this reason ALL realestate related papers
 & receipts should be kept for life. All expenses not deducted
 (or deductable) on an annual return can be charged against
 this 'basis' at reckoning time.
 Commercial & some special situations would allow deductions of
 all or part over a depreciation schedule or on an annual return.

 The history of Jacks purchase should have no bearing on a
 subsequent sale.

 Hurf Sheldon hurf@ionvax.tn.cornell.edu
.