Profile picture for JosephSiwek

If when selling I give someone seller's assist, can I deduct that on my taxes?

  • October 25 2013 - Philadelphia
  • 0Yes

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Answers (7)

No it is not tax deductible.
  • January 08
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Profile picture for Mike Bottaro
No.  All seller's assistance is the buyer choosing to finance his/her closing costs.  The sellers proceeds are based off the net sales price received.  The bank is giving the assist to the buyer, not the seller.  In reality, seller's assistance should be called bank assistance.
  • October 26 2013
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It is not deductible by the seller as mortgage interest paid.
  • October 25 2013
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Profile picture for George Roser
This is a question for your CPA .. I would say no it can't be deducted
  • October 25 2013
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I think you need to speak with a tax accountant to be sure.

In theory the seller assist is not money which went into your pocket.  My initial reaction is NO because the net real estate transaction should be tax free if this was your primary residence and you do not exceed the thresholds (look on the IRS website it will give you the amounts which are exempt)
  • October 25 2013
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I feel the answer is NO.

A transaction with seller assist simply adjusts your net selling price on the HUD and that should have no bearing on tax implications. If you simply sold the house for that same net amount without the assist there would be no tax benefit good/bad.

With seller assist in a transaction you can insist that the commission be based on the net selling price after the assist and there may be transfer tax implications that could add up depending on the size of the assist.

You must consult a tax professional to review this question.

Mike Godley

  • October 25 2013
  • 0Yes

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Profile picture for Outer Banks N C
In general I think you can, but ask your tax adviser and show them your HUD1 form from the closing. If it's closing costs I think so. If it is concessions maybe not.
  • October 25 2013
  • 0Yes

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