I am doing a double closing on a Short Sale. My buyer wants me to contribute about $72,000 in seller concessions. I will break it down below. My question is, will I be taxed on this $72,000 by the IRS or will I be able to write it off since it will be on the HUD? I just spoke to my Title Co. and they stated that they report the sales price to the IRS not the net from the HUD.
$46,000 going to buyer for repair costs
$11,000 seller contribution
$10,000 to buyers partner for marketing services
$5,000 to buyers other partner for marketing services
I want to make sure that if I sell this house to this buyer that I’m not the one paying taxes on this $72,000 that I will never see.