abctax55
Level 15
12-22-2022
12:11 PM
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Jeff has it correct (of course :-). Your client 'borrowed' the money to 'pay' the closing costs.....it's just that the transaction was only on paper, no actual exchange of cash. Look at those costs carefully to make sure there aren't any prorations that might be immediately deductible (property taxes & insurance come to mind) and that none of them are actually impounded items (again, property taxes & insurance come to mind).
HumanKind... Be Both