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Returning Member
posted Mar 3, 2020 1:44:15 PM

How do I report realtor commission credits received when selling a home?

I sold a house and received a credit back from both my realtor and the buyer's realtor at closing. How am I supposed to report these credits?

 

- Subtract the credits from realtor commission fees and other selling expenses that I am allowed to deduct from the sale?

- Add the credits to the sale price of the house (note, the 1099s form I received did not include the credit in box 2 gross proceeds)

- Report as some other form of income?

- No need to report them at all?

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1 Replies
Level 15
Mar 3, 2020 1:49:50 PM

It increases your selling price for calculating the gain.  It doesn't really matter how you get there (reduce the selling costs adjustment or increase the sales proceeds).  If you want your schedule D to match the 1099-S, then reduce your selling costs adjustment.