supersnoop
What time is the three o'clock parade?
- Joined
- Nov 13, 2013
- Messages
- 12,628
This is more of a "selling" question than a "purchasing" question, but it's probably helpful on both sides of the transaction.
A contract's cost basis is usually the amount you paid plus the closing costs, and can be adjusted by the capital reserves included in each annual dues payment. But what about the dues paid at closing, especially if they're reimbursing the selling for costs they've already incurred? Do you only include the capital reserves portion of the reimbursed dues, or do you include the whole amount? And on the selling side, if you receive funds for reimbursement of dues, is that included as taxable income, or can you exclude that amount?
A contract's cost basis is usually the amount you paid plus the closing costs, and can be adjusted by the capital reserves included in each annual dues payment. But what about the dues paid at closing, especially if they're reimbursing the selling for costs they've already incurred? Do you only include the capital reserves portion of the reimbursed dues, or do you include the whole amount? And on the selling side, if you receive funds for reimbursement of dues, is that included as taxable income, or can you exclude that amount?
