Does anyone know how this will affect the tax basis of the property, if the buyer is now responsible for paying the buyer's agent? IRS Pub 523 has this to say on real estate commissions & basis:
I'm not sure whether or not this would apply to the buyer's agent commission when directly paid by the buyer.Costs owed by the seller that you paid. You can in-
clude in your basis any amounts the seller owes that you
agree to pay (as long as the seller doesn’t reimburse you),
such as:
• Any real estate taxes owed up through the day before
the sale date,
• Back interest owed by the seller,
• The seller's title recording or mortgage fees,
• Charges for improvements or repairs that are the sell-
er's responsibility (for example, lead paint removal),
and
• Sales commissions (for example, payment to the sell-
er's real estate agent).
Statistics: Posted by evancox10 — Mon Sep 09, 2024 11:26 pm — Replies 216 — Views 17509