WELCOME TO MAXIMUM CASHBACK
Buying a Home has changed. Many home buyers prefer to search for a new home themselves.
The traditional Real Estate model is still playing by the old rules, but we at MoveCashBack.Com feel that home buyers should be rewarded for all of their efforts. By actively participating in the search for your home, you save us time and money, so we pass the savings on to you.
We will give you anywhere from 2.85% to 6% of the purchase price of your new home as Cashback at closing (dependent on us receiving at least 3% to 6% commission from the Builder).
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
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… Revenue Ruling 2006-27 states a nonprofit corporation that provides down payment assistance towards the purchase of homes to low-income individuals and families is not
Second is the question of whether the broker is required to give the buyer a Form 1099 for the refund. IRS again says “no.” Section 6041 requires Forms 1099 to be issued in cases where a taxpayer is paying various items in relation to the taxpayer’s business. However IRS further states “A payor generally is not required to make a return under section 6041 of the Code for payments that are not includible in the recipient’s income, nor is a payor required to make a return if the payor does not have a basis to determine the amount of a payment that is required to be included in the recipient’s income. Therefore the broker is not required to issue a Form 1099 in relation to the refund of the broker’s commissions.
Citation: Letter Ruling 200721013 - - A copy of this ruling can be found at www.irs.gov by going to the Electronic Freedom of Information Reading Room and clicking on 200721013, or by going to www.irs.gov/pub/irs-wd/ and clicking on 200721013. We can also send you a pdf copy attached to an email upon request.