Tax Law (Questions About Taxes)/Rental Property



Client purchased a two family house late last year as a rental property.  On the closing statement under credit to buyer was PCDA, do you know what this is and how it's treated?

Also, are all the Title Charges added to the cost of house and depreciated or do they get expensed as incurred?  Lastly, included in the Title Charges were real estate taxes for 2013. Should these costs be classified as prepaid taxes rather than capitalized?

Thank you in advance,



Thanks for your question.

Most likely PCDA is a local taxing authority.

All of the expenses of the purchase such as title charges are included in the cost of the house.  Taxes can be expensed when paid.

Hope this helps.

John Stancil, CPA  

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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