Real estate and end of year tax planning.

Nov 16, 2006 2 Replies
A

I'm sure this is obvious, but I'm not really thinking straight at the moment. Hypothetically, suppose a real estate escrow opens in 2006 and closes in 2007. Is the gain reportable in 2006 or 2007?



Are withheld taxes attributable to 2006 or to 2007?



Are withheld states taxes deducible (for Federal purposes) in 2006 or 2007? I'm pretty sure the answers are all 2007, but I may be missing something.



-- Arthur L. Rubin snipped-for-privacy@sprintmail.com



>
>
>
>
>
>
>
>
>
Vote
Twitter Facebook LinkedIn
A

Gain: Reported in 2007 Taxes (assumes you meant real property taxes): Reported in the year the taxes are actually paid to the tax collector.

Vote
Twitter Facebook LinkedIn
S

there's no reportable (taxable) event until the transaction closes which in these facts is 07, this includes the tax withholdings which are done at the close.

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required