i was just wondering if my cost basis for my property is it what i paid for it plus all the other small expenses closing cost etc… or is it what the property is worth that i would us for tax purposes. example i bought a house for 12,000 but in my propety taxes its valued at 52000 would i use that as my basis or is it the 12,000 that use well any help would be greatly appreciated
you lost me. talk to a cpa.
Your cost basis is what you actually paid for the property including most of your closing costs. Closing costs that you can expense instead of adding to your basis are interim interest on financing, points paid to secure financing, and prorated property taxes.
well thank you for your response and sorry i lost some of you what i meant was what the cost basis is for depreciation purposes what i paid for the property or the value of the property thank you
Now that is a different question. It helps to be specific.
Depreciation basis is not simply what you paid for the property. Land can not be depreciated. Subtract what you paid for the land from what you paid for the property to get your depreciation basis.