WHEN PURCHASING YOUR NEXT RENTAL PROPERTY ALTER WHO PAYS FOR VARIOUS EXPENSES ON THE HUD-1 TO SAVE YOU TAX DOLLARS!
While it is customary for the seller to pay for all real estate commissions out of the proceeds her or she receives, there is no reason why you can’t alter the sales price so that the net proceeds to the seller is the same ye the buyer can take the expense of paying the commissions and therefore the tax benefit.
The result is the same to the seller including the effect on their taxes. Furthermore, you can alter who pays the transfer tax and accomplish the same the same thing, which is the seller, gets the same net proceeds and has no negative impact on the capital gains tax or income tax they pay and yet the buyer gets the full tax right off.
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