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Capital gains and seller's concession

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perfectmax

Junior Member
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

Senior Member
perfectmax said:
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

Senior Member
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.
 

pojo2

Senior Member
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.
 

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