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Old 26.07.2019, 10:39
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Re: Buyer paying agent's fees - tax implications?

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Stumbled across a real estate agency touting it's 'new concept', where the property seller pays no fees, rather the buyer pays the agent's commission (IIRC 2.5%). This agency seems to have a lot of properties on offer, so I assume sellers are finding that an attractive model. Hope it doesn't become a norm - paying the piper yet unable to call the tune - but given this market...

So to my questions:

If I understand the present tax practice, a seller can deduct the agency fees from capital gains taxes on the sale. Is there any tax treatment to be aware of for a buyer who has to pay the fee?

Or, can the fee be considered in the base price to determine CTG against eventual sale? (After all, 2.5% of many millions isn't exactly pocket change...)

Many thanks.
It's definitely a cost of acquisition just as if the seller is paying it's a cost of disposal so yes it's part of the base cost.
It's often done in France as legal costs & fees are charged at about 9% to the purchase price & agents fees are double around 5/6%. (saves buyer about 0.5%)
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