Q. Do real estate agents fees get deducted before any capital gains liability on a home sale? A. Absolutely. This is just one element of determining whether there will be any gain or loss when a home is sold. In a nutshell, here is how to determine whether a homeowner has a gain or loss on a sale. Subtract the home's adjusted basis on the date of sale from the sales price, and the result will be any net gain or loss. In other words: Sales price, minus the adjusted basis, equals the net gain (or loss) on the sale. Sales price The sales price, for tax purposes, is the total amount realized on the sale, minus selling expenses. Selling expenses include: Real estate sales commissionsPoints paid by the seller to the buyer's lenderAttorney and accountant feesSettlement chargesClosing fe...
Get Inman via Facebook Messenger
Our top headlines delivered once a day.