How to Make $1 Worth Up to $1.38

True or False:  the home Buyer gets to deduct closing costs even if the Seller pays for them.

Answer:  True (subject to the Buyer’s individual tax circumstances, e.g., whether or not they itemize their deductions, their marginal tax rate, etc.) 

What the foregoing means is that 3% of seller-paid concessions on a $200,000 Twin Cities home purchase could actually be worth over $8,000 to the Buyer.

That’s $6,000 in costs picked up by the Seller, plus potentially more than $2,000 in reduced taxes.

Nice . . .

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

Leave a Reply