The thing I go on and on about over here on DiscountAgent.com is the fact that as a Utah discount real estate agent, I deliver great customer service while also sharing my commission with my clients. I’ve told you that most of my clients get around $4,500. But there’s an elephant in the room, right? And that elephant’s name is Taxes. Especially, are Utah real estate commission rebates taxable income? A fat check is great, but no one wants the IRS to come knocking at their door demanding a share of it.
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The quick answer is, No. Utah real estate commission rebates are not counted as taxable income. Phew, right? Typically, they’re going to count as a discount on the selling price. This means that when you go to sell the house, your profit will be higher. This will only cause an issue on taxes if you make more than $250,000 on the home’s sale (or $500,000 if you’re married and filing jointly).
Now, I’m not a tax professional. I help people buy and sell houses. I really want you to talk to your accountant about all of this, since no two situations are exactly the same, and taxes are crazy complicated. As a general rule, though, real estate commission rebates aren’t taxed.
So give yourself permission to dream a little. With the commission rebate, you can do all sorts of things. Pay for closing costs. Get new appliances. Spruce up the owner’s suite or do a little remodeling in the kitchen.
I would love to chat with you about your plans for buying or selling a home in the Salt Lake area. Please give me a call so we can get to know each other and figure out if we can work together. My goal is to take the hassle out of realizing your perfect home dreams.