• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

seller's concession and capital gains tax

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

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?
 


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?
The seller's concession is deducted as a selling cost.

Also, you really should have a Realtor representing you.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top