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by Tammy Curry on January 24th, 2006

Tammy Curry

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Can I deduct the realtor's commission from my taxes?

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Answers. 2 helpful answers below.

  • by notquitered on May 7th, 2008

    notquitered

    You can deduct the realtors comission from your overall sales prices but it would only really have an impact if you found yourself owing capital gains tax on the sale of property. So if it was a rental property or you went over the $250,000 non-taxable amount allowed by law for the sale of a primary residence. It works like this:

    Say you paid $100,000 for your home. The sale price (for example) 10 years later is $700,000. $700 - $100 = $600. The remaining gain is $600 but you pay no tax (single person) on $250 so lets deduct that out too. Now what remains is $350K which is taxable as cap gain. However, you now get to deduct expenses which includes what you paid the realtor so say that was $20,000, you taxable gain is now down to $350K -$20 = $330K. Any other expenses can reduce the gain amount as well so if you painted or landscaped or fixed things up in order to sell, you can further reduce the amount taxable. Attorney fees count too!

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  • by jalex137 on January 31st, 2006

    jalex137

    It's probably been done at closing. The comission would have been deducted from your proceeds as a part of the cost of sale, and would not be included in the profit you report.

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