Real Estate Home Mortgages/When to settle

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Question
I have a sales agreement to purchase a rental property (attached to my house). It will take about 2 months to prepare the house to rent. Is there any advantage to settling in Dec. 2012 vs. Jan 2013?
Thank you.
Herb

Answer
Thanks for your question.

There may be some tax advantages to closing during the 2012 calendar year.  (I need to state that I am NOT a CPA).  I'm assuming that you will have expenses incurred for preparing the property for rental, legal fees, deductible closing costs, etc.

Some of these may be qualified deductions which would reduce your taxable income.  

Interest rates are extremely low right now, it may benefit you to take advantage of these, as it's likely rates will increase come the first of the year.

I hope this information is helpful, thanks for using AllExperts.com!

About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

Real Estate Home Mortgages

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