I wanted to see how the following situation can be dealt with:
Lets say I buy a fixer house and the agent who represents me (the buyer) get a
3% commission. Now he agrees to give me a portion of that commission to cover my expenses to assist in the upgrade of the house, paying for closing costs etc.How would the agent show this "kickback" of commissions on his tax return?
And is it possible for me as the buyer to use this "kickback" as a reduction in the basis of the purchase of the house (which I plan to occupy) or do I need to declare this as income?
Thanks.