1031 Exchange- Seller Credit

[Dionne Coward]

Does the seller credit I get on my closing statement in a 1031 exchange "reduce" the purchasing expenses or do I reduce the sales price (fmv). These tax softwares do not make it clear where to enter what.

[Dave Foster]

@Dionne Coward.  But whether it goes against closing costs or sales price it lowers your net sale price.  And your net sale price is your reinvestment target for the 1031.