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



Comments(2)

  • LynLinz22nd July, 2007

    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)
    ?

  • NewKidInTown322nd July, 2007

    The cost basis is 167K because that is all he paid. If he had paid 173K, then his basis would have been 173K.

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