Do I have to pay taxes on buyer credit on second home sale 1099-s

[nablyle]

We sold our recreational cabin property in 2019. We gave the buyer a $20,000 credit on the price (per our RE agent, rather than a $20k price reduction). The 1099-S is for the original amount instead of $20k less. Do I have to pay taxes on money never received?

[TaxGuyBill · Accepted solution]

No, you don't.

When reporting the sale in the program, I would add $20,000 to either the Selling Expenses or to the Basis (cost).

[Anonymous]

not the sharpest RE agent around.  the buyer will have the same basis.  maybe it has to do with mortgage.