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Author Topic: Tax consequences  (Read 1608 times)

Offline robr

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  • Posts: 5
Tax consequences
« on: September 15, 2008, 10:40:13 am »
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.

Offline BLL

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  • Posts: 2015
Re: Tax consequences
« Reply #1 on: September 15, 2008, 09:47:01 pm »
You only pay the difference between the sales prices and your cost basis (actual cost plus improvements and expenses).

 




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