Real Estate Home Mortgages/When to settle
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?
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!
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