Discussion Archives:Commission Income on Sale of Primary Residence

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Discussion Forum Index --> Advanced Tax Questions --> Commission Income on Sale of Primary Residence


Discussion Forum Index --> Tax Questions --> Commission Income on Sale of Primary Residence

Goldbug (talk|edits) said:

24 June 2009
Client is a realtor set to receive commission income from the sale of their own personal residence. Do they also have the ability to deduct the realtor fees against the sales price? Seems like a silly question (just spent the last two weeks at altitude), but I can't find anything that says they can't....

Thanks.

Trillium (talk|edits) said:

24 June 2009
When you searched, did you see Commission to self in real estate deal? (Thinking that the cited case may give you what you need.)

Goldbug (talk|edits) said:

24 June 2009
I'm specifically looking for something that denies a relator the ability to deduct realtor fees associated with the sale of their personal residence when the fees are in fact income to the realtor....a 121 issue not a SE issue.

Trillium (talk|edits) said:

24 June 2009
And Riley's cite didn't say anything about that? I hadn't pulled up the case or the rev ruling at the time I posted the suggestion to review that discussion; I'll go take a look now.

okay, I'm back - wouldn't you know it; the one time you'd like 'em to expound a bit on the related law they just make it cut and dried. However, I still think the case gives you what you need, in that by requiring the commission income to be included in SE income just as if it were an arms-length transaction, it eliminates the possibility that the inclusion of the commission as a selling expense could be questioned. No?

And before we get too far into the theory of this - do you even know that there's a reportable gain on the sale of the residence? If not, then it really doesn't matter, eh??

Goldbug (talk|edits) said:

24 June 2009
Hehehe...Thought your initial response was a little snide, so I was doing my best not to reciprocate....Now the picture is clear. No worries.  :-)

Paragraph 2 - Agree it could be inferred and seems logical, but try my best to only deal in absolutes with taxes.

Paragraph 3 - Again agree. 99% certain it will be over $500K gain.

Thanks!

Goldbug (talk|edits) said:

24 June 2009
In hindsight, the title of my post is completely misleading....

Liberati@frontiernet.net (talk|edits) said:

30 June 2009
Tuesday, June 30, 2009

Greetings, Goldbug. I think some additional information is needed here to answer this question. What is the legal entity of your realtor client? Is it an Individual, a Sole Proprietorship, a Regular C Corporation, a Sub Chapter S Corporation, a Partnership, a Limited Liability Company, a Limited Liability Partnership or a Professional Corporation?

Angelo Liberati CPA, CFE

Trillium (talk|edits) said:

30 June 2009
Posting just to get the long user name out of the "last poster" field.

Liberati@frontiernet.net (talk|edits) said:

30 June 2009
Tuesday, June 30, 2009

Hey, Trillium. If you want to be a dysfunctional person, then I suggest that you do not post in this community.


Angelo Liberati CPA, CFE

Trillium (talk|edits) said:

30 June 2009
Hi, Angelo - could you please take a look at the note on your talk page? Appreciate it.

Liberati@frontiernet.net (talk|edits) said:

30 June 2009
Tuesday, June 30, 2009

Hey, Trillium. Like I said, if you want to be a dysfunctional person, then I suggest that you do not post in this community.

Angelo Liberati CPA, CFE

Trillium (talk|edits) said:

30 June 2009
Hi, Angelo! Please see the notes on your talk page for more info on this. Would really appreciate it!

Liberati@frontiernet.net (talk|edits) said:

30 June 2009
Tuesday, June 30, 2009

Trillium. I read the notes on my talk page, and I understand. However, there is a better way of expressing this than the manner that you chose.

Trillium (talk|edits) said:

30 June 2009
Please leave me a note on my talk page about that, Angelo, as we are always looking for ways to improve the communication here. Would appreciate any improvements you'd like to suggest. Thanks.
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