cashback schemes in real estate

[newbie]

Hi, I would like to know if there are tax implications in cash back given by developer when buying a house. I would think I would have to report this as income in my next yeear tax return but I am being told that this is just a rebate and a discount. But I thin uncle same wold treat this as income. Anyone?

[drewnick]

I have always have the same question about rebates. You know, the kind that have a Best Buy and Circuit City.

While I have not done enough mail-in rebates for it to make a huge difference, I did have one that was about $350, and I was wondering about how I should handle this on my tax return.

My guess is no one here will answer you with a reliable answer, because were not tax professionals. If you do find out, please update this thread and let us know!

[TJ2007]

Well it's a good exscuse to ask the developer for another 25% or so to cover the taxes on it in case:D

Personally I would say no - as it is someting you have already paid for and you are just getting your money back (money that you have already paid tax on)

Guess this is a question for a tax professional - though if you ask 5 they will all probably give you a different answer....

[Thesa]

Most developer discounts show on a closing statement as a credit to the buyer - they either lower the closing costs or the actual cost of the home - as long as you use the #'s on your closing statment you are reporting accurately.... none of my clients have had any tax issues with developer or seller credits over the last couple years.