Are you taking advantage of the tax deductions on your settlement sheet?

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If you are a landlord, most items on a settlement sheet have to be capitalized and amortized over the life of the mortgage, however:

  • Interest expense from the time of settlement until your first mortgage payment is deductible.
  • The amounts that you reimburse the seller for property taxes, utilities, homeowner’s association dues, etc. are deductible rental expenses to you.
  • Likewise, any of these items that you have to pay because the seller did not are also deductible to you.
  • Additionally, amounts paid in advance such as mortgage insurance and homeowner’s insurance are also deductible.

If you are purchasing a principal residence or a second home, then only mortgage interest and property taxes are deductible.

As always, this is only meant as a brief overview.  If you feel that we can be of further assistance to you, please contact our office to set up an appointment.

Email us at: [email protected]

Call us at: 302-239-3500

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– Doherty & Associates Team

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