realtor client rebate tax question

[dorothyywt]

I'm a realtor based in Austin. I have a question about tax on client rebate. I will give my clients $5000 as rebate from my commission. Because of lender requirements, I can't put these 5000 in their closing costs. I have to give them in personal check. If I do that, should I pay tax based on my total commission or I can deduct rebate as business expense?

[Bsch4477]

If you are self employed and include the rebate amount in reported income you can claim that amount as an expense.