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Hello,
If the buyers agrees to pay the seller's agent commission as part of a home purchase negotiation, are there any taxable ramifications to either party?
Thank you!
Dawn
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Buyers don't tell sellers how to spend the money they are paid. They can say that's what they are doing in a negotiation, but they might as well be telling the sellers to paint the dining room blue. Buyers use contract price to figure basis, sellers use it to figure proceeds. No tax consequences to what they call it.
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Thank you, Bob, for confirming what I thought I knew. A client reached out to me as their agent advised them to consider possible tax ramifications if they accepted a counter-offer that included the requirement that the buyers pay the sellers agent commission. Not sure what that agent was referring to. 🤔
