topic Does real estate cashback rebate taxable? in Deductions & credits

Does real estate cashback rebate taxable?

karthio — Tue, 10 Feb 2026 10:45:18 GMT

Re: Does real estate cashback rebate taxable?

PaulaM — Mon, 26 Feb 2024 00:03:02 GMT

No, it is considered a reduction in the home's sales price.

Re: Does real estate cashback rebate taxable?

karthio — Mon, 26 Feb 2024 02:31:20 GMT

Thank you. However my realtor sent me 1099-MISC and he did not looks like to withdraw or to issue the corrected form not to notify the IRS

. It seems like he wants make his plate clear by issuing the 1099-MISC to the buyer.

How can I report this with TurboTax while submitting return and since it's not taxable money how to handle in my return filling?

Thanks in advance

Re: Does real estate cashback rebate taxable?

DianeW777 — Mon, 26 Feb 2024 15:09:53 GMT

Retain the form in your tax file and you can respond should you receive any letter from the IRS later. This is option one.

Option Two:

Enter the 1099 as miscellaneous or “other“ taxable income. Then go back to the other taxable income section and create a new item of other income in a negative amount (minus sign) to offset the income from the 1099. Label the negative item as something like 'Property cost adjustment'. You will be able to e-file. As indicated, keep the document and detail in your tax papers for at least three years after your filing due date.

Other Miscellaneous Income:

Go to the Wages and Income section of TurboTax

Scroll to Less Common Income > Select Miscellaneous Income, 1099-A, 1099-C
Select Other reportable Income > Enter a description (----) and the amount

@karthio