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 . . .
