Is commission paid to the agent by the seller tax deductible on seller's 1040?

Asked by Apple, 75035 Sat Mar 27, 2010

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T.E. & Naima…, Agent, Dallas, TX
Sat Mar 27, 2010
BEST ANSWER
No sorry, the sales commission is not tax deductible. Here is a link from the IRS.

http://www.irs.gov/pub/irs-pdf/p521.pdf Go to page 21 for more details.

Naima
214-289-8555
Naima@Sumner-Realty.com
Web Reference:  http://www.sumnerrealty.com
0 votes
Syed Rizvi, Agent, Dallas, TX
Mon May 13, 2013
Commission fees you pay to a Realtor is not deducible IRS doesn't allow that
2 votes
Ali Qureshi, Agent, Pleasanton, CA
Mon Feb 17, 2014
The advice is to contact a tax professional as it is a tax question and not a real estate question.
1 vote
Gerard Dunn, Agent, Chevy Chase, MD
Sun Mar 28, 2010
The commission is added to the "Basis" of the property when calculating tax liability.

In essence - it IS deducted - but is limited to the Capital Gains segment of your return.
1 vote
Gita Bantwal, Agent, Jamison, PA
Sun Mar 28, 2010
Go to http://www.irs.gov for details.
Agents are not allowed to give you tax advice. You should talk to a tax professional.
Web Reference:  http://www.gitabantwal.com
0 votes
T.E. & Naima…, Agent, Dallas, TX
Sat Mar 27, 2010
You are correct Apple, the document is only 19 pages long. I made a mistake. The page I was referring to is 13.

Naima
Web Reference:  http://www.sumnerrealty.com
0 votes
Robert Regan, , Dallas County, TX
Sat Mar 27, 2010
That is a yes and no answer to your question. It depends on the circumstances in each specific case and to determine what case applies to your situation, I would refer you to a tax professional as everyone else has also suggested. It's not always cut and dry when it comes to the IRS.
0 votes
Apple, Home Seller, 75035
Sat Mar 27, 2010
Thanks so much. BTW the document in the referenced link only has 19 pages.
0 votes
Marcia Levine, Agent, Plano, TX
Sat Mar 27, 2010
The commission is considered part of the sales price of the home, so I don't believe it is deductible. However, Lynn is correct. Always check with a CPA for tax advice!
Web Reference:  http://www.MarciaLevine.com
0 votes
Dallas Texas, Agent, Dallas, TN
Sat Mar 27, 2010
Best to confer with CPA for all tax advantages when purchasing OR selling a home

Lynn911 Dallas Realtor & Loan Officer
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
Web Reference:  http://www.lynn911.com
0 votes
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