March 15, 2022
The Internal Revenue Service (IRS) has also gotten on board with commission credits. It has said that these credits don’t count as taxable income to the recipient. The IRS has ruled that they’re an adjustment to the cost basis a buyer has on their property.
Of course, this basis might contribute to capital gains taxes down the road in some circumstances when buyers ultimately sell. But if you take advantage of the IRS Section 1031, you will be able to take your proceeds and exchange them into another property, deferring your capital gains taxes until you decide to sell your new property.
« Previous Next »