Author Topic: Are realtor commissions on sale of investment property tax deductable?  (Read 1069 times)

tweezers

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Apologies if the answer to this question is obvious. 

We're considering selling our investment property and I haven't been able to determine if real estate commissions on the sale are tax deductible (I'm looking at Publication 527 Residential Rental Property).  Are they?  We're selling this ourselves but will likely need to pay the buyer's agent 2.5%, I believe?).  Thanks in advance.

sokoloff

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You probably want Publication 544, which clarifies that selling expenses are deducted from the selling price, as you'd expect.

zephyr911

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Apologies if the answer to this question is obvious. 

We're considering selling our investment property and I haven't been able to determine if real estate commissions on the sale are tax deductible (I'm looking at Publication 527 Residential Rental Property).  Are they?  We're selling this ourselves but will likely need to pay the buyer's agent 2.5%, I believe?).  Thanks in advance.
Yes they are. But if you're using the net amount you receive at closing, the commission will have already been deducted, so make sure you don't duplicate that.