sale of residnece - transfer tax deduction (real estate, house)

[zrcatdrivr]

does anyone know of how, or where I can itemize a deduction of the TAXES (revenue stamps) charged by tilte closing company which is payable to the State of Michigan and city/county where the residence is located?. The percentage they charge is upon "transfer of owenrship" or upon "sale of your real estate property in Michigan".

This tax is a result of proposition "A" - Headly amendment in Michigan real estate transaction propery taxation. Is this amt. deductible on either a federal return or State of Michigan return and if so where? What category or line item?

Or is the amt. to be subtract fro the proceeds of the sale or absorbed as part of the recalulation of your basis?

Tax deadline is upon us..need HELP !

[ellswo33]

I don't think it is a specific line deduction for either federal or state. I think if you had to worry about paying taxes on a Gain on the sale of your house (for federal) you would be able to take it out of your gain first to arrive at a new amount. I am no tax pro however. I would suggest calling H&R Block or another tax preparation agency -- maybe they have someone that can answer that. Or call the IRS or Michigan Department of Treasury. If you get someone surly, hang up and call back -- maybe you'll have better luck with the new person that answers the phone. If you don't get an answer in time, you may need to file an extension for your tax returns. Good luck !

[magellan]

I don't think it's deductible either. I believe only real estate property tax is deductible. In doing a quick google search, I found this link:

http://www.plantemoran.com/Publicati...Avoid+Them.htm

[rlrocca]

I don't think they are deductible - at least not on the federal returns.

Check this site out.

Publication 530 (2007), Tax Information for First-Time Homeowners

Towards the bottom of the page it says

Transfer taxes (or stamp taxes). You cannot deduct transfer taxes and similar taxes and charges on the sale of a personal home. If you are the buyer and you pay them, include them in the cost basis of the property. If you are the seller and you pay them, they are expenses of the sale and reduce the amount realized on the sale.