soft cost

Definition

The part of an equity investment, aside from the literal cost of the improvements, that could be tax-deductible in the first year.

Use soft cost in a sentence

The soft cost could be a tax deductible and that confused my friend, so I explained it to him as best as I could.

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What is the soft cost of the maintenance of this piece of property; I must know so I can deduct the amount on my taxes and file them.

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The soft cost hadn't been taken into account yet, but I had faith that my accountant would run the numbers and give me the honest truth.

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