Real Estate Blog

Real Estate Broker’s Refund to Homebuyer Not Taxable

A real estate broker representing a home BUYER typically receives part of the sales commissions for his/her services of bring in a ready, willing, and able buyer.  The agreement between this broker and the home buyer provides for the broker to refund part of these commissions to the home buyer.  Alternatively the broker’s agency permits the buyer to apply the “refund” as a credit towards closing costs, the down payment, and/or a reduction in purchase price.  There are two questions in this letter ruling request.

 First is the question of whether the refund or credit to the buyer is considered to be income to the buyer.  IRS answer is “no.”  Section 61 requires all income to be taxable except… 

180 Views, 0 Comments

 
Your clients are looking for the perfect fit and we've got it right here. Check out our current featured homes below.
Community (Lot) Was Price Address Bed / Bath / Garage Sq. Ft. MLS
Prosper            
Frontier Estates (0139) $480,906 $464,900* 1601 Lonesome Dove 4 / 4.5 / 3 3,598 13482437
Frontier Estates (0140) $493,277 $474,990* 1611 Lonesome Dove 4 / 3.5 / 3 3,570 13431218
Frontier Estates (0182) $547,993 $529,990* 1841 Bozman
31 Views, 0 Comments

Are you ready to buy?

Owning your own home is about more than just being able to decorate any way you like; it's about being prepared to maintain your home over the years, realizing that part of your income and time will go towards repairs and maintenance. It's about being willing to take the risks of home ownership with a realistic expectation of the rewards.

How much can you afford?

It can be discouraging to find that your salary won't stretch as far as the home you want to own. However, sacrificing a huge part of your income just to pay the mortgage can very quickly make home ownership a burden rather than a point of pride. It's better to buy a modest home now and look at purchasing your "dream home" in a few years.

What is your
80 Views, 0 Comments