La Quinta, CA
(760) 895-3516

Tuesday, May 12, 2015

Most Common Capitalized Costs for U.S. Property

Need to calculate the cost basis of your U.S. property? Here is a list of the most common capitalized costs for U.S. property.

Purchase Price

  • (not unstated interest)

Miscellaneous Costs

  •  Appraisal fees
  • Installation & testing costs
  • Freight 

Major Improvements

  • New roof
  • Demolition costs
  • Additions
  • Upgrades

Closing Costs

  • Sales tax on purchase
  • Title transfer taxes
  • Title insurance
  • Recording fees
  • Attorney/escrow fees
  • Document preparation/review
  • Brokerage commissions
  • prepurchase taxes

The capitalized costs will be needed when selling U.S. property to determine the capital gain on the property. We can help determine the capital costs and capital gain/loss to apply for withholding tax recovery for Canadians and non resident aliens selling U.S. property.

Borders Bookkeeping

(760) 895 3516