"Bill Brown" <brow...[at]longwood.edu> wrote:

- quote -

See? Thank you, and all the other responders, for asking.
Our accountant didn't even bother to ask us this, when in
fact the home *was* going to be a rental. In fact we were
barred from certain mortgages with better interest rates
specifically because this purchase could not be regarded as
a primary residence.

Therefore--if any of you would be so kind--could the mortage
application and accompanying house inspection cost be
regarded as investment losses?

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Stuart A. Bronstein wrote:
- quote -

No, because the 350$ has nothing to do with the cost of a
house; only pertains to obtaining a mortgage.

ChEAr$,
Harlan Lunsford, EA n LA

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"Bill Brown" <brownwp[at]longwood.edu> wrote:
- quote -

But then if they go on to buy another home, can they
capitalize the $350 and add it to the basis of the new home?

Stu

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Jules Vide <passepasrien[at]yahoo.com> wrote:

- quote -

Were you planning on buying the home to live in? (That
seems likely based on your calling it a home, not a house.)
In that case, the fees are personal and not deductible.

If you were buying an investment property (to rent out, or
just to flip for a profit) then the expenses should be
deductible. Do you have evidence that you're in the real
estate business?

Seth

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"Jules Vide" <passepasr...[at]yahoo.com> wrote:

- quote -

Was it the potential purchase of a home (your personal
residence) or of rental real estate? If the former, your
accountant is correct.

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Our accountant said that a $350. mortgage application fee
and $500. spent on a home inspection that turned up a defect
the seller refused to remediate are not allowed as
deductions. This accountant pays little attention to our
questions, and we're considering going elsewhere. Anyway,
since this mortgage fee and home inspection cost were
incurred in anticipation of an investment (property), I
don't see why they can't be itemized as losses.

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