Can you deduct your realtor commission from your taxes?

Answer by  cgroverla (516)

When a seller pays realtor commission, the commission is added to the basis of the property and may reduce tax on the gain from the sale. The commission itself is not deducted.

Answer by  Att4372 (1704)

When you buy a house, commission is added to your basis and reduces your gain when you sell. When you sell, your commission is added to the cost of sale and reduces your gain. You cannot deduct expenses from your ordinary income. You can only use them to reduce gain on the sale during the year of the sale.

Answer by  Chaneygirl (1755)

If it is the sale of your personal residence no, unless you had taxable gain associated with it. If it is the sale of rental, business or investment property yes.

Answer by  Darlene (194)

Any kind of commission is money earned. Taxes should be taken out of your commission or you can report this to the IRS and they can help you figues out what needs to be taken out. Taxes are important to to pay due to not going to jain or prision. Hope this helps.