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Posted by Arthur Kamlet on June 19, 2007, 9:30 pm
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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.
First I assume this is all disclosed on the closing
setlement statement? If not, it could be fraudulent and I
would seek legal advice.
If disclosed then it reduces the cost basis of your
property, but is not taxable income.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
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Posted by GSalisbury on June 19, 2007, 9:30 pm
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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.
I'm not a tax guy but I don't see how it could be taxable
income. It's not income at all (you had it to begin with it
- didn't newly come your way). You simply got some of your
money back - it reduced your cost. You paid ten dollars for
something and got two back so your net cost was eight and
the two is back where it came from - your pocket. Maybe it's
an interest free loan but that seems a stretch. Seems like
it should be no different than buying a thingy-bob at
Staples and getting a two dollar rebate check some time down
the road.
But then again I'm not a tax dude.
Geo.
<< ------------------------------------------------------- >>
<< 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 24, 2007, 10:42 pm
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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'm not a tax guy but I don't see how it could be taxable
> income.
It could be if it was in exchange for work.
For instance, OP built a web site for the agent, and the
compensation was a rebate on the agent's commission when OP
bought a house through that agent. I'd think that rebate
would be taxable income, not a price discount.
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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Posted by Seth on September 24, 2007, 8:48 pm
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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'm not a tax guy but I don't see how it could be taxable
> income.
It could be if it was in exchange for work.
For instance, OP built a web site for the agent, and the
compensation was a rebate on the agent's commission when OP
bought a house through that agent. I'd think that rebate
would be taxable income, not a price discount.
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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by **THE-RFI-EMI-GUY** on June 21, 2007, 5:44 pm
Please log in for more thread options Jim Sokoloff wrote:
> 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.
I asked this same question last year and got exactly the
opposite advice. I was told that I had to report it as
income because the sales agent had issued a 1099. I even
had a tax preparer locally, try to imply that I was
committing fraud by treating it as a reduction of basis. I
ended up paying the tax on it and am not too happy about it.
When you think about it, the money received is really part
of your downpayment handed right back to you.
--
Joe Leikhim K4SAT
"The RFI-EMI-GUY"©
"Treason doth never prosper: what's the reason?
For if it prosper, none dare call it treason."
"Follow The Money" ;-P
<< ------------------------------------------------------- >>
<< 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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