Saturday Reporter-Herald July 30, 2011 D1
Real Estate Matters
www.reporterherald.com • Saturday, July 30, 2011 • Reporter-Herald
Deduct sum from the settlement statement ILYCE GLINK TRIBUNE MEDIA SERVICES
Q
uestion: Last summer we refinanced our farm home. Line 103 of the settlement statement indicated that we had settlement charges of about $4,000. A month or so later, we listed the property for sale and it closed at the end of last year. Can we claim the $4,000 on our income tax itemized statement (schedule A) for last year? Answer: Just about everybody has seen a settlement statement if they have purchased or sold a home during the last 30 years or so. That settlement statement is usually prepared by the closing agent, title company, settlement agent or by the person handling the closing of a residential transaction. The settlement statement goes by the name of HUD-1, closing statement or settlement statement, depending on what state you are in. But the document itself is a standard statement that is the same wherever you close on a residential real estate transaction. There might be some exceptions, but most everyone will agree that the form seems quite long and confusing, even after the so called improvements to the form put in place at the beginning of last year. The amount you referenced from line 103 is the sum of costs from the second page of the settlement statement. You are right to think that you might be able to deduct some of those expenses, but some are definitely not deductible. The second page of the settlement statement will include charges from your lender to give you financing; it may also include points and fees charged by your lender, fees charged by the closing agent, title company and other parties, prepaid interest, fees to record documents, and amounts you might need to escrow for real estate taxes and insurance payments. For practical purposes, you might have already deducted or have the right to deduct some of those fees. If you paid interest at the time of your closing, you might have received a 1099 form from your lender itemizing the interest that was part of that $4,000. You won’t be able to deduct that amount twice. Some of the closing costs from that page of the form are I See GLINK/Page E3
Oakwood’s 20/20 Sale Free A/C, landscaping and more at Thompson River Ranch PAID ADVERTORIAL
P
rice is always a major factor when looking for a new home, so of course you want to find the best value package for the cost. Through August 15, Oakwood Homes is offering big savings in the form of their 20/20 promotion – 20 points for their 20 years building in Colorado. With eight sales in the past month, offers like this add even more to the value the homes and community has to offer. Beautiful surrounding scenery and interior landscape of Thompson River Ranch do justice to the Colorado countryside, so how about the landscape of your yard? You don’t have to worry about it if you put five of your 20 points towards free frontyard landscaping. Add an air conditioning unit for another eight points and
Photos courtesy Oakwood Homes The Franklin bi-level floor plan from Oakwood Homes.
you’ll make it through these heat waves in comfort — and without paying much due to how energy efficient Oakwood’s homes are in Thompson River Ranch. For a complete list of
QUICK MOVE-IN HOMES • Gilpin: $219,900 1,748 finished square feet — three bedrooms, two-and-a-half baths • Franklin: $203,292 1,667 finished square feet — three bedrooms, two-and-a-half baths Call or visit the sales office for more information or to schedule a showing.
free selectable items offered, visit Oakwood homes’ website at www.OakwoodHomesCO .com or stop by the community and speak with one of the Community Managers this weekend. You can also view and personalize each of the 15 different floor plans offered at Thompson River Ranch on Oakwood’s website. Adding an extra bedroom, office space, media center and more are possible additions you can make to whatever floor plan you fall in love appreciate the ability to with. customize the rooms and “All our home buyers space of the home they are buying, which allows more personal touches than they could get through other homes on the market,” said Mike Welty, Community Manager at Thompson River Ranch. Building a home from the ground up allows personalization at no extra cost so your home remains very affordable.
You can tour the nine models this weekend and see what free choices you would select with your 20 points. Contact Mike Welty or Dwayne Montoya at 970-669-9801 for additional information on the community. You can find more information on Thompson River Ranch or start building and personalizing your home today at www.OakwoodHomesCO .com.
Building a home from the ground up allows
personalization at no extra cost so your home remains
Second level of the Franklin — open kitchen to dining and great rooms.
very affordable.
Buying a home that needs work? Call the experts in FHA 203(k) renovation financing. An FHA 203(k) mortgage allows you to finance both your home purchase and renovation with a single loan. Call now to learn more. Vivian DeVoe, VP Mortgage Banker, 970-227-4702 Loans and rates subject to credit approval. FHA conditions and restrictions apply.
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