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Posted by Herb Smith on June 18, 2007, 9:28 am
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> My situation: I just bought a house, and had arranged with
> my buyer's agent that I would recieve a rebate of <some
> percentage> of the selling price of the house, to be paid
> from the commission they received from the seller's agent
> (who gets it from the seller, who gets it from me).
>
> The question is: is this rebate taxable income to me? I
> expect that I will receive a 1099 from my buyer's agency,
> but that in and of itself does not settle the matter of
> taxability, at least not to me.
>
> If it matters at all for state tax issues, state is
> Massachusetts.
The "rebate" is a reduction of your buying price or cost
basis. It may increase your gain when you sell, but is not
currently taxable.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Seth on June 18, 2007, 9:28 am
Please log in for more thread options
> My situation: I just bought a house, and had arranged with
> my buyer's agent that I would recieve a rebate of <some
> percentage> of the selling price of the house, to be paid
> from the commission they received from the seller's agent
> (who gets it from the seller, who gets it from me).
>
> The question is: is this rebate taxable income to me?
If you received it for no other reason than that you
purchased the house, then it's a reduction in the purchase
price (basis). If you received it in exchange for something
you did for the agent, it's taxable income.
Seth
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Herb Smith on June 19, 2007, 9:30 pm
Please log in for more thread options
> My situation: I just bought a house, and had arranged with
> my buyer's agent that I would recieve a rebate of <some
> percentage> of the selling price of the house, to be paid
> from the commission they received from the seller's agent
> (who gets it from the seller, who gets it from me).
>
> The question is: is this rebate taxable income to me? I
> expect that I will receive a 1099 from my buyer's agency,
> but that in and of itself does not settle the matter of
> taxability, at least not to me.
>
> If it matters at all for state tax issues, state is
> Massachusetts.
The "rebate" is a reduction of your buying price or cost
basis. It may increase your gain when you sell, but is not
currently taxable.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Herb Smith on June 19, 2007, 9:30 pm
Please log in for more thread options
> My situation: I just bought a house, and had arranged with
> my buyer's agent that I would recieve a rebate of <some
> percentage> of the selling price of the house, to be paid
> from the commission they received from the seller's agent
> (who gets it from the seller, who gets it from me).
>
> The question is: is this rebate taxable income to me? I
> expect that I will receive a 1099 from my buyer's agency,
> but that in and of itself does not settle the matter of
> taxability, at least not to me.
>
> If it matters at all for state tax issues, state is
> Massachusetts.
The "rebate" is a reduction of your buying price or cost
basis. It may increase your gain when you sell, but is not
currently taxable.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
|
Posted by Seth on June 19, 2007, 9:30 pm
Please log in for more thread options
> My situation: I just bought a house, and had arranged with
> my buyer's agent that I would recieve a rebate of <some
> percentage> of the selling price of the house, to be paid
> from the commission they received from the seller's agent
> (who gets it from the seller, who gets it from me).
>
> The question is: is this rebate taxable income to me?
If you received it for no other reason than that you
purchased the house, then it's a reduction in the purchase
price (basis). If you received it in exchange for something
you did for the agent, it's taxable income.
Seth
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ------------------------------------------------------- >>
|
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