Paying Buyers Closeing Fee How It Affects My Capitol Gains
Hello, I am closing on a house I sold for 207,000 the buyer want me to pay for closing cost of 6000.00 out of the 207,000. If I do this will I have to pay the 20% capitol gain on the 6000. Which I figured to be 1200.
Or will the hud showing the credit eleminate the captiol gain on the 6000.00 amount of money I am not receiving.
This is a rental property I purchased last year.
_________________
[ Edited by Stuffwholesale on Date 11/11/2004 ]
No, this will add to your basis in the property and you will not have to pay CG tax on it.