Seller Contributions - Tax Deductible for the Seller?

I've always understood that seller contributions are tax deductible for the seller.  My seller called her accountant who informed her that seller contributions are deductible for the buyer.  My accountant agrees with me - that seller contributions are tax deductible for the seller.  Can anyone point me in the right direction please? 
Thank you so much!! 
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September 20 2009 - US
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Answers (3)

If I"m not mistaken it would raise the basis, not lowering it.  Raising the basis would reduce the tax liability if any.  Reducing the tax basis would increase the taxable amount.  However, it is advisable to check with an accountant or tax professional.
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October 09 2009
Your best bet is to check with an accountant.  However, having said that I never heard that the seller contributions to the buyer are tax deductible. It would seem to me that the sellers contributions to the buyer would merely reduce the net gain on sale.
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October 09 2009
I'm not an accountant, but I find it hard to believe that seller contributions are tax deductible by either the buyer or the seller.  It makes more sense that the seller contributions would reduce the basis to the seller and have no tax effect to the buyer.  Are you sure you're not thinking about something other than seller contributions?
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September 21 2009
 
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