Buying Real Estate: Basis, Closing Costs & Financing
Before The Contract Becomes A Closing
A property purchase creates more than a new payment. It creates an ownership record that will follow the asset through deductions, improvements, refinancing and sale. The time to organize that record is when the contract, lender and closing agent are all working from the same facts.
Start with three questions: who will own it, how will it be used, and where will the money come from? Those answers help connect the settlement statement to the tax return. A residence, a rental and property held for sale can lead to different questions even when the buildings look alike.
By Paul D. Diaz, EA, MBA · IRS Enrolled Agent · Florida Licensed Real Estate Broker Since 1995
Guide references and linked sources checked October 18, 2026.
Before The Contract Becomes A Closing
Describe the proposed purchase, intended use, ownership and expected closing date in the free consultation. The useful conversation starts with the transaction you are considering, not a deduction someone else claimed.
The book gives you the framework to ask a better question. The consultation gives the firm the context to understand your concern. Professional work begins with an agreed scope; a book purchase does not include tax preparation, representation or a private analysis.
$299 hardcover. Shipping and applicable taxes are shown at checkout. Already own it? Register Your Copy →
Follow The Source.
These are starting points for education. Check the revision, applicable tax year and current law before relying on a rule for a transaction.
The Guide’s references point to the relevant discussion; they do not establish your eligibility for a deduction, exclusion or tax treatment.
