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  1. #1
    perfectmax is offline Junior Member
    Join Date
    Oct 2005
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    seller's concession and capital gains tax

    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?
  2. #2
    CAlandlords is offline Member
    Join Date
    Aug 2005
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    Quote 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?
    The seller's concession is deducted as a selling cost.

    Also, you really should have a Realtor representing you.

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