We sold and then subsequently purchased a home using the zillow360 program. The program
- Sell your house to zillow
- Purchase new home within two months
- Use a zillow agent for the new home purchase
- Use zillowhomeloans for financing on the new home purchase
- Satisfy all these things and receive a rebate of 2% of the sale price when we sold our home to zillow
We completed this program and received our check a couple weeks after closing on our new home. Now zillow has sent me a 1099-MISC. Is this rebate money taxable as income?
I have read a lot of stuff indicating that rebates on home purchases are not taxable and the broker should not issue them. I am hoping that this is the case for me, but I also just want to make sure I file my taxes correctly.
The main difference between a rebate on the home purchase and zillow360 is that the rebate is calculated off of the home sale not the home purchase. Maybe that changes the tax treatment?
Any insight would be greatly appreciated. And if I can provide more details please let me know. Thanks.
