Real Estate Expenses: Mortgage Executed after Settlement

An Authorized Certifying Officer of the Mid-Atlantic Region of the Internal Revenue Service (IRS), requested an advance decision with regard to the claim of an IRS employee for expenses incurred in the purchase of a residence incident to a transfer of official duty station. The employee, who obtained a personal loan in order to purchase a new residence pending receipt of proceeds from the sale of his former residence and who executed a first mortgage against the new residence following receipt of the money from the sale, could be reimbursed expenses in connection with the mortgage transaction.