Capital gains and seller's concession

[perfectmax]

North Carolina....

I am purchasing a home FSBO and he is doing a seller's concession for me to include closing costs of the loan. He bought the property about 11 months ago and he is selling for a higher value so he is faced with short term capital gains (23% is what he will have to pay on them).

He is telling me that he does not want to do a seller's concession unless I pay an additional 23% on the amount that we decide on for the seller's concession (closing costs).

Question: Is this correct or does seller's concession get deducted from the capital gains just like a realtors cost?

[HomeGuru]

Originally Posted by perfectmax

North Carolina....

I am purchasing a home FSBO and he is doing a seller's concession for me to include closing costs of the loan. He bought the property about 11 months ago and he is selling for a higher value so he is faced with short term capital gains (23% is what he will have to pay on them).

He is telling me that he does not want to do a seller's concession unless I pay an additional 23% on the amount that we decide on for the seller's concession (closing costs).

Question: Is this correct or does seller's concession get deducted from the capital gains just like a realtors cost?

**A: this is not the Tax Law forum.

[PghREA]

Home Guru is right, this is a tax question.

Seller's concession is considered a "cost of selling the home" and is deducted like the Realtor's commission. Have him talk to his accountant.

[HomeGuru]

These questions are so taxing**************

[pojo2]

May we also assume you do not even have an Atty to protect your interest, prepare the PROPER paperwork, answer these kinds of questions etc..?

I would suggest to the seller that I (you) are not concerned with his tax situation and give me (you) a price.

[HomeGuru]

It appears that the Seller may not have an attorney/CPA either.