Can real estate fees be deducted in home sale? Premium Content

Real Estate Tax Talk

Inman News®

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:

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