1031 replacement property buyer agent commission rebate

[Snehanshu Ashar]

Hello all.

I have some 1031 replacement property transaction questions:

• For my replacement property, can I work with a buyer agent who offers me rebate from their commission?
• Can this rebate be in to form of a check after closing? i.e. not part of the 1031 closing statement, so that I can get some cash to use, without it being considered boot?

[Dave Foster]

@Snehanshu Ashar, If it's done after closing it would be very hard to track as boot.  But if the IRS ever saw it they would call it boot and taxable for sure.