Capital Gains And Cost Base
Situation is my son is purchasing a condo for $173k
I gave up my commission ( realtor) to lower the price to $167k
As far as later when figuring capital gain on this investment property, is the base $173k or $167k
The developer chose to state the purchase price at $167k
Do we need to re-stucture the contract to make the purchase price $173K, so his base price will be higher or can he add my commission credit on later when determining the base price.
Also I do not want to claim this as income on a 1099
Thanks, NewKid , for the reply
So without my commission deduction he would have paid $173K , but as I understand you to mean that basis is only $167K (speaking of price only)
?
The cost basis is 167K because that is all he paid. If he had paid 173K, then his basis would have been 173K.