I plan on seeing a tax advisor in the near future, but does anyone have experience with selling a house with concessions? Were you able to write off all closing costs and concessions in order to reduce capital gains? Or, were you taxed on the full amount of house purchase before concessions were paid?
Seller asks for $100,000.
Buyer, in order to roll in their closing costs, offers seller $150,000 with the seller giving a $50,000 concession or credit toward closing costs and seller still walks away their asking price.
Will the seller pay taxes on the $100,000, or the $150,000?
I've received mixed messages from different consultations. It seems I may or may not be taxed on the gross proceeds as opposed to the net proceeds. It just depends on how my 1099-S is written, which is like saying it's an IRS crap shoot.
Last edited by Radiant1; 01-23-2017 at 02:29 PM.