Sale of Second Home

Hi,

I have two offers on a fully paid for second home (inherited in 2010) and am wondering about the tax implications of each offer. After I pay for commissions, escrow, etc, the net to me from each differs only by a few thousand.

However, one offer is fairly straight forward, with me paying all commissions, which is customary in CA, and spliting some of the larger fees (escrow and title) with the buyer.

The second offer is for $10K more, again with me paying all commissions, but also ALL closing fees, AND up to a $5K credit for the buyer's other costs, including loan origination on his VA loan.

By the time you do all the calculations, the second offer nets me about $3K more.

I assume I can deduct commissions from the sale price, which gets me below the basis of the home, thus I'd have no capital gains. Is the $5K credit the second buyer wants for his own loan costs, deductible by me?

TIA

Reply to
Boris
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