Are real estate commissions paid by the seller or a percentatage tax deductible?

Answer 1

They are not deductible, but they will be subtracted from the price in calculating the gain that you realize. If your gain is excludable from income, this means you get no tax benefit.

On the other hand, if you are selling a rental property or other property not used as your personal residence, then your gain will be reduced. If any part of the gain would have been ordinary income, in most cases the commissions (and other selling costs) will have the effect of reducing ordinary income before capital gain.

You should consult a qualified tax advisor for details.

Answer 2

Real estate commissions will reduce the gain on the sale, and therefore your potential tax liability.

If this is your primary residence, and you have lived in it for 2 of the last 5 years immediately prior to the date of sale, and the gain is less than $250,000 ($500,000 if married filing jointly) then the gain is not taxable and the commissions may be irrelevant, unless they reduce your gain below the tax threshold.

Answer 3

: When you sell your home, you can reduce your taxable capital gain by the amount of your selling costs, which include real estate commissions, title insurance, legal fees, advertising and inspection fees. Cost typically stemming from decorating or repairs -- painting, wallpapering, maintenance, and the like -- are also selling costs if you complete them within 90 days of your sale and with the intention of making the home more saleable

when you are Purchasing a Home the real estate agents commission is tax deductible, as are the attorney fees, surveys, title work, & transfer taxes.

Answer 4

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