Seller expenses

[ajw1112020]

i paid the seller credit at closing. Is that considered an expense? I see conflicting information on previous posts. I also paid for a home warranty policy (American Home Shield for appliances). Is that considered an expense?

[MindyB]

Seller credits are treated as a reduction in selling price, and the home warranty for the buyer is a selling expense. However, if you received a 1099-S for the selling price including the seller credit, you could include the seller credit with sales expenses, to avoid receiving a matching notice from the IRS.

See: Publication 523 for more information.