nick pasqual hit with surprise tax bill that could cost homeowners thousands
If you thought you were done with surprise expenses for the year, think again. The same tax loophole that helped celebrity home flipper nick pasqual save millions is now being closed—and it could leave you holding the bag. Starting next month, the IRS will target a specific deduction used by flippers like Pasqual, shifting the cost back to buyers. Real estate experts warn that this change could add $3,000 to $7,000 to the price of an average fixer-upper, since sellers will pass the hit down to you. Consumer advocates say you should expect higher closing costs and fewer "deals" on renovated homes. Don't panic, but do ask your agent for a breakdown of all fees before signing any contract—or you might be the one paying for Pasqual's old write-offs.