Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Louise purchased her primary residence for $240,000. As part of the closing procedure, she paid $2,300 in a loan origination fee, $750 to a lawyer to review the purchase contract and other closing papers, $150 for a property survey, and $800 for title insurance. She also gave the real estate agent a $75 gift basket in appreciation for his hard work. What is Louise's basis in the residence

Sagot :

jepessoa

Answer:

$241,700

Explanation:

Luoise's basis in her house = purchase price + any costs associated and necessary to complete the purchase process = $240,000 (price of the house) + $750 (lawyer's fees) + $150 (property survey) + $800 (title insurance) = $241,700

In order to determine a house's basis, you must assume that you are purchasing the house using cash, no fees directly related to a mortgage are included, nor gifts to real estate agents.

Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.