GSalisbury <salsburyg.at.comcast.dot.net[at]giganews.com> wrote:
- quote -

It could be if it was in exchange for work.

For instance, OP built a web site for the agent, and the
compensation was a rebate on the agent's commission when OP
bought a house through that agent. I'd think that rebate
would be taxable income, not a price discount.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

Is this the thread you are referring to?

http://tinyurl.com/ynwse8

Both of the responses you got in this group agreed that it
was a reduction of your purchase price, not income to you.
That seems to be the same advice as in this current thread,
not the opposite. I don't see either of them telling you
that you had to report it as income. They both said that the
1099 should not have been issued, and suggested that you try
to get the agent/broker to correct it.

- quote -

Maybe you should find a different tax preparer.

Bob Sandler

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

GSalisbury <salsburyg.at.comcast.dot.net[at]giganews.com> wrote:
- quote -

It could be if it was in exchange for work.

For instance, OP built a web site for the agent, and the
compensation was a rebate on the agent's commission when OP
bought a house through that agent. I'd think that rebate
would be taxable income, not a price discount.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

PaulTry <f5619d$1re$1[at]panix1.panix.com> wrote:
- quote -

Yup. What I said.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff wrote:

- quote -

I asked this same question last year and got exactly the
opposite advice. I was told that I had to report it as
income because the sales agent had issued a 1099. I even
had a tax preparer locally, try to imply that I was
committing fraud by treating it as a reduction of basis. I
ended up paying the tax on it and am not too happy about it.
When you think about it, the money received is really part
of your downpayment handed right back to you.

--
Joe Leikhim K4SAT
"The RFI-EMI-GUY"©

"Treason doth never prosper: what's the reason?
For if it prosper, none dare call it treason."

"Follow The Money" ;-P


<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Arthur Kamlet wrote:
- quote -

See: http://www.rebatereps.com/faq/index.php

According to Fannie Mae guidelines and federal laws, all
credits must be given on the settlement statement (not after
closing). Failure to disclose the payment to the buyer on
the settlement statement can constitute a "false statement
to a lender" (a federal crime), and also a violation of the
License Law and Commission rules. You can read what a
state real estate commission wrote about this federal
statute. As long as the rebate is listed on the HUD-1, it is
perfectly fine in the majority of states, and most lenders
do allow the rebate on the HUD-1. However, if your lender
will not allow the rebate on the HUD-1, then the only way
for you to get the credit would be to have the seller lower
the sales price by the amount of the rebate. It is the
buyer's responsibility to ensure they have selected a lender
who will allow the rebate on the HUD-1 statement.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"Jim Sokoloff" <jim.sokoloff[at]gmail.com> wrote:

- quote -

I'm not a tax guy but I don't see how it could be taxable
income. It's not income at all (you had it to begin with it
- didn't newly come your way). You simply got some of your
money back - it reduced your cost. You paid ten dollars for
something and got two back so your net cost was eight and
the two is back where it came from - your pocket. Maybe it's
an interest free loan but that seems a stretch. Seems like
it should be no different than buying a thingy-bob at
Staples and getting a two dollar rebate check some time down
the road.

But then again I'm not a tax dude.
Geo.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokoloff[at]gmail.com> wrote:

- quote -

First I assume this is all disclosed on the closing
setlement statement? If not, it could be fraudulent and I
would seek legal advice.

If disclosed then it reduces the cost basis of your
property, but is not taxable income.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokoloff[at]gmail.com> wrote:

- quote -

If you received it for no other reason than that you
purchased the house, then it's a reduction in the purchase
price (basis). If you received it in exchange for something
you did for the agent, it's taxable income.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokol...[at]gmail.com> wrote:

- quote -

The "rebate" is a reduction of your buying price or cost
basis. It may increase your gain when you sell, but is not
currently taxable.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokol...[at]gmail.com> wrote:

- quote -

The "rebate" is a reduction of your buying price or cost
basis. It may increase your gain when you sell, but is not
currently taxable.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokoloff[at]gmail.com> wrote:
- quote -

If you received it for no other reason than that you
purchased the house, then it's a reduction in the purchase
price (basis). If you received it in exchange for something
you did for the agent, it's taxable income.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokol...[at]gmail.com> wrote:
- quote -

The "rebate" is a reduction of your buying price or cost
basis. It may increase your gain when you sell, but is not
currently taxable.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Jim Sokoloff <jim.sokoloff[at]gmail.com> wrote:
- quote -

First I assume this is all disclosed on the closing
setlement statement? If not, it could be fraudulent
and I would seek legal advice.

If disclosed then it reduces the cost basis of your
property, but is not taxable income.

--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"Jim Sokoloff" <jim.sokoloff[at]gmail.com> wrote:
- quote -

I'm not a tax guy but I don't see how it could be taxable
income. It's not income at all (you had it to begin with it
- didn't newly come your way). You simply got some of your
money back - it reduced your cost. You paid ten dollars for
something and got two back so your net cost was eight and
the two is back where it came from - your pocket. Maybe it's
an interest free loan but that seems a stretch. Seems like
it should be no different than buying a thingy-bob at
Staples and getting a two dollar rebate check some time down
the road. But then again I'm not a tax dude.

Geo.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

My situation: I just bought a house, and had arranged with
my buyer's agent that I would recieve a rebate of <some
percentage> of the selling price of the house, to be paid
from the commission they received from the seller's agent
(who gets it from the seller, who gets it from me).

The question is: is this rebate taxable income to me? I
expect that I will receive a 1099 from my buyer's agency,
but that in and of itself does not settle the matter of
taxability, at least not to me.

If it matters at all for state tax issues, state is
Massachusetts.

Thanks for any advice!
---Jim

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >