Overpaying commission on a rental property to receive rebate on f

[Andrew Le]

I currently own a rental property that I am planning to sell this Spring. After the sale of this property, I would like to use the proceeds to purchase a primary residence. I know that this situation does not qualify for a 1031 Exchange. Would I be able to pay my agent a higher commission on the sale of the rental property, say 7-10% and then receive a rebate on a future home purchase? This way I can deduct the 10% commission from the profit of the sale and pay less capital gains tax. I know that Redfin gives rebates on commission so I am thinking this may be possible. Here are the numbers I am working with.

Rental Property Sale Price = $225,000 Adjusted Cost Basis = $150,000 Gross Profit = $75,000

8% Commission to Seller's Agent = $18,000 2.5% Commission to Buyer's Agent = $5,625 Transfer Tax = $4,500 Miscellaneous = $3,000 Total Expense = $31,125

Net Profit = $43,875 Capital Gains @ 15%= $6,581.25

Net Profit with Normal Commission = $56,250 Capital Gains @ 15% = $8,437.50

Future Primary Residence Purchase Price $500,000 2.5% Buyer's Agent Commission = $12,500 Full Rebate = $12,500.

Net Value of both Properties = $725,000 2.5% Normal Agent Commission = $18,125

Actual Agent Commission in this Scenario = ($18,000+ $12,500) - $12,500 = $18,000

Of course, I would have to get this approved by the agent's broker, but is this possible?

Sorry if this is hard to follow.