Deductible Selling Expense

It appears that you, as seller, agreed to a $19,000 reduction in price

-- as a part of the transaction. If your property was listed at $349,000, and the HUD statement is registering that price and then reflecting your reduction as a "concession," then it has already been deducted from your income.

If, on the other hand, you agreed to a sale at the $330,000 price -- and then further agreed to grant the buyer an additional $19,000 discount -- then that "concession" would be a deduction. However, the HUD statement should make that clear.

Is the net sales price (gross income to you) reflecting the "about $330,000" for which you sold the property? If so, and the $19,000 is _subtracted_ from that amount (leaving you with approximately $311,000), then Yes, it is deductible and should be indicated as a cost for you, as seller.

If the $19,000 "concession" is _above the line_ and your _net proceeds_ are "about $330,000" (always less items such as pro-rated taxes, real estate commission, etc.), then you cannot again deduct the $19,000.

Bill

Yup!

There used to be until very very recently, actual 501(c)(3) "charities" who would get the seller to "make a contribution to a charitable organization" who would strip off a fee and use the rest to reduce the price the buyer had to pay. Which is the same as reducing the sales price.

And HUD went along, and until rcently the IRS went along with this procedure.

One such 501(c)(3)'s website, whose name reminds me of The American Dream, to its credit, does not say the amount contributed by the seller is deductible. Maybe they still operate somewhere?