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Updated almost 8 years ago,
How to account for cash back from seller for repairs?
Our inspection report indicated a few suggested fixes. We asked the seller to compete the fixes as part of our contingency agreement and they offered to just give us cash back at closing to cover the costs. We agreed received the cash back. How do I account for this come tax time? Is this taken out of the cost basis of the purchase?
Thanks for the help,
Brandon