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Tax Implications. Analyze This

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coa132435

Guest
What is the name of your state? Louisiana

I just built a house.Builder agreed to pay $1,500.00 toward buyer's closing cost. The day of closing Builder hands over a check for $1,500.00 payable to the Buyer not the Title Company. Buyer deposits the check in his checking account.
Does the buyer have to report this 1,500.00 as income on his Federal Tax Return?
if he does What part or form should he use?. Replies will be really appreciated
 


abezon

Senior Member
No. It's not income. The seller just paid some if the points. The buyer has to reduce his basis in the house by the money the seller donated.
 

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