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Questions & Answers To better help the general Georgia public,to sort out a somewhat misunderstood topic about cash rebates for both home buyers, and home sellers and the possible tax liabilities. Contact The IRS Direct with your questions As the residential real estate market continues to soften, It may become more common for brokers to rebate or reduce brokerage commissions. In order to benefit buyers and home sellers to encourage sales. "All Georgia Brokers, Agents/Realtors" At there option Can reduce there commissions and listing percentages. A recent ruling addresses the tax consequences of such rebates. A buyer’s agent paid the buying customer a portion of the commission after closing. The IRS held that the buyer does not have to recognize this payment as income. Instead the payment should be treated as a downward adjustment of the purchase price. "Also, the broker does not have to issue a Form 1099" reporting the payment to the buyer to the IRS. The rationale is that since the amount is not income it does not have to be reported. PLR 200721013 Please review your booklet below about real estate competition "All Real Estate Commissions Are Negotiable they Are NOT Set By Law" Please Make This Page One Of Your favorites, After All It's About You. Thank You Vance 
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