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ajw1112020
March 7, 2025
Question

Seller expenses

  • March 7, 2025
  • 1 reply
  • 0 views

i paid the seller credit at closing. Is that considered an expense? I see conflicting information on previous posts. I also paid for a home warranty policy (American Home Shield for appliances). Is that considered an expense?

 

    1 reply

    M
    MindyB
    March 8, 2025

    Seller credits are treated as a reduction in selling price, and the home warranty for the buyer is a selling expense. However, if you received a 1099-S for the selling price including the seller credit, you could include the seller credit with sales expenses, to avoid receiving a matching notice from the IRS.

     

    See: Publication 523 for more information.

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