Tax Treatment of Agent Commission on Own Purchases

[Rusty Scott]

For those licensed agents out there....when you buy a property for yourself, either personal residence or investment property, you typically receive the buyers agent commission.

Is this considered taxable income? Or is it considered a price reduction, lowering your cost basis in the property?

I know that if you rebate your commission to a client....it is not considered taxable income for the client....but rather a lower purchase price in the eyes of the IRS.

But what if you are your own client?..common sense tells me it would be the same thing, but can't find any concrete info on this.