Cash back at closing paid to contractor. Tax implications?

[Account Closed]

I recently purchased a home that appraised for $135k. I was under contract at $115k when the inspection report came back indicating it needed a brand new roof. I walked away. However, the other agent came back and offered $4k off to adjust for the roof, making the new price $111K. I didn't want to pay out of pocket for a new roof so I obtained several quotes for a roof replacement and renegotiated $118k with $7k back at closing to my roofing contractor. It all worked out - I got the house and a new roof under market. My question is, how do I handle the $7k cash back depreciation-wise?

[Account Closed]

@Ashish Acharya Sorry I wasn't more clear. This was a financed deal with 20% down. However, to avoid paying the additional cost to replace the roof out of pocket, we 'marked it up to mark it down,' so to say. I was only abl eto do this because the house appraised over ask and my lender approved it. In the end, the seller still received the net total of $111k and I financed a purchase price of $118k with a $7k check back at closing to my contractor for the roof replacement.