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Are commission paid to a real estate agent for the sale of a rental property considered rental property commission expenses

 
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Are commission paid to a real estate agent for the sale of a rental property considered rental property commission expenses

No, if you paid the real estate agent in connection with the sale, it is a sales expense.  It is used in calculating the gain or loss for the disposition of business property (Form 4797).  The rental property commission expense is like a "referral fee" for finding the renter, and this is an expense reported on Schedule E.

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Level 7

Are commission paid to a real estate agent for the sale of a rental property considered rental property commission expenses

No, if you paid the real estate agent in connection with the sale, it is a sales expense.  It is used in calculating the gain or loss for the disposition of business property (Form 4797).  The rental property commission expense is like a "referral fee" for finding the renter, and this is an expense reported on Schedule E.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post