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Capital gains and seller's concession

On Lawyer & Legal » Real Estate & Property Law

1,961 words with 5 Comments; publish: Mon, 17 Oct 2005 20:14:00 GMT; (80093.75, « »)

North Carolina....

I am purchasing a home FSBO and he is doing a seller's concession for me to include closing costs of the loan. He bought the property about 11 months ago and he is selling for a higher value so he is faced with short term capital gains (23% is what he will have to pay on them).

He is telling me that he does not want to do a seller's concession unless I pay an additional 23% on the amount that we decide on for the seller's concession (closing costs).

Question: Is this correct or does seller's concession get deducted from the capital gains just like a realtors cost?

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  • 5 Comments
    • May we also assume you do not even have an Atty to protect your interest, prepare the PROPER paperwork, answer these kinds of questions etc..?

      I would suggest to the seller that I (you) are not concerned with his tax situation and give me (you) a price.

      #1; Tue, 18 Oct 2005 07:19:00 GMT
    • Quote:
      === Original Words ===

      North Carolina....

      I am purchasing a home FSBO and he is doing a seller's concession for me to include closing costs of the loan. He bought the property about 11 months ago and he is selling for a higher value so he is faced with short term capital gains (23% is what he will have to pay on them).

      He is telling me that he does not want to do a seller's concession unless I pay an additional 23% on the amount that we decide on for the seller's concession (closing costs).

      Question: Is this correct or does seller's concession get deducted from the capital gains just like a realtors cost?

      **A: this is not the Tax Law forum.
      #2; Mon, 17 Oct 2005 20:18:00 GMT
    • These questions are so taxing**
      #3; Mon, 17 Oct 2005 23:24:00 GMT
    • It appears that the Seller may not have an attorney/CPA either.
      #4; Tue, 18 Oct 2005 11:21:00 GMT
    • Home Guru is right, this is a tax question.

      Seller's concession is considered a "cost of selling the home" and is deducted like the Realtor's commission. Have him talk to his accountant.

      #5; Mon, 17 Oct 2005 22:09:00 GMT