Other common deferred expenses include startup costs, the purchase of a new plant or facility, relocation costs and advertising expenses. Both prepaid expenses and deferred expenses are important aspects of the accounting process for a business. As such, understanding the difference between the two terms is necessary to report and account for costs in the most accurate way.
Tip: Get the lender to pay the closing costs. If you're short on cash for the closing costs and can't roll the closing costs into the mortgage, some lenders will pay part or all of the closing costs, but in exchange you'll have to pay a higher interest rate on the loan, perhaps 0.25% or 0.50% higher.
Closing costs can save you money on your taxes if you itemize. In a real estate sales transaction, the buyer can negotiate certain concessions. A seller may agree to pay a portion or all of the buyer's closing costs, up to a certain amount.Seller-paid closing costs may benefit both parties. A seller can fetch a higher price for his property and the buyer does not have to come in with as much out-of-pocket money to close.losing costs can save you money on your taxes if you itemize. In a real estate sales transaction, the buyer can negotiate certain concessions. A seller may agree to pay a portion or all of the buyer's closing costs, up to a certain amount. Seller-paid closing costs may benefit both parties.