In article <28735-49273BB0-2733[at]storefull-3113.bay.webtv.net> ,
Bill <an_ordinary_guy_158[at]hotmail.com> wrote:
- quote -


Yup!



There used to be until very very recently, actual 501(c)(3) "charities"
who would get the seller to "make a contribution to a charitable
organization" who would strip off a fee and use the rest to reduce
the price the buyer had to pay. Which is the same as reducing the sales
price.


And HUD went along, and until rcently the IRS went along with this
procedure.


One such 501(c)(3)'s website, whose name reminds me of The American
Dream, to its credit, does not say the amount contributed by
the seller is deductible. Maybe they still operate somewhere?

--


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

--
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nospam[at]verizon.net (Karl) posted:

- quote -

It appears that you, as seller, agreed to a $19,000 reduction in price
-- as a part of the transaction. If your property was listed at
$349,000, and the HUD statement is registering that price and then
reflecting your reduction as a "concession," then it has already been
deducted from your income.

If, on the other hand, you agreed to a sale at the $330,000 price -- and
then further agreed to grant the buyer an additional $19,000 discount --
then that "concession" would be a deduction. However, the HUD statement
should make that clear.

Is the net sales price (gross income to you) reflecting the "about
$330,000" for which you sold the property? If so, and the $19,000 is
_subtracted_ from that amount (leaving you with approximately $311,000),
then Yes, it is deductible and should be indicated as a cost for you, as
seller.

If the $19,000 "concession" is _above the line_ and your _net proceeds_
are "about $330,000" (always less items such as pro-rated taxes, real
estate commission, etc.), then you cannot again deduct the $19,000.

Bill

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I recently sold a property for about$330,000. As part of the sale, there was
a "Sellers Concession" as listed on line 506 of the HUD-1 Statement in the
amount of $19,000. Is this a deductible expense?

KSB

--
<< ------------------------------------------------------- > << 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. > << ------------------------------------------------------- >