Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago,

User Stats

153
Posts
34
Votes
Jack Forester
  • Investor
  • Cumming, GA
34
Votes |
153
Posts

Where to credit seller paid closing costs (I'm the purchaser)

Jack Forester
  • Investor
  • Cumming, GA
Posted

Okay, I bought a new rental property and had the seller pay 2% of closing costs (max allowed by my lender). Under the new Closing Disclosure form (no longer the HUD form), it shows nothing specifically paid by the seller, it only shows up in the "Calculating Cash to Close" and "Summaries of Transactions" as the "Seller Credits".

So, for the purposes of calculating the items for "Amortization over the life of the loan" (30 yrs) vs "Depreciation over life of the structure" (27.5 yrs), where do I deduct the Seller Credits?  Do I get to pick?  Does it just reduce the overall cost of the property (thus only a portion gets depreciated, as a portion would go towards the land)?

Loading replies...