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. 

[Phil Cohen]

@Rusty Scott

I just purchased a home for myself as a buyers agent and took a closing credit instead of receiving my portion of the commission. The closing credit was not taxable. My attorney informed me that I could also get a non taxable down payment credit if my brokers commission is greater than my closing costs.