The IRS deems the commission sellers pay us to represent you as part of the procurement cost of the property. Even though it is the seller paying the commission it is seen as part of the price of the home. This allows us to bring the commission into our corporate account and then directly pass a portion on to you as a rebate. You don't pay income taxes on it and neither do we. Although the rebate is considered a non-taxable event, the basis of the property is affected and therefore when calculating capital gains the rebate should be accounted. For example if a property is purchased for $500,000 and a rebate is given for $10,000 the basis for the property is now $490,000. Consult your accountant though. Check it out direct from the IRS here (see page 28, bottom right). Be sure to ask questions if you're not clear. Of course it is recommended that all clients using MoneyBackBuyer.com seek their own tax advice. Pretty cool.
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