I already have $10k from the seller for closing costs and the total closing cost including termite fumigation is around $10k. So I might have to declare this $5k as 1099 income. I think I will hire a tax accountant for next year.
[quote=SD Realtor]hehehehe –
dont bring him down data…
Actually how you take the rebate will determine how your tax return is affected. If you take the income straight up then yeah it can and should be declared… Basically 1099 income.
However if you take the income inside escrow and use it to cover various closing costs then you will be okay. However do not try to double end it and actually use expense those closing costs that the rebate covered.[/quote]
