Can closing costs be taxable for the seller if the seller pays the closing costs for the buyer?

Question

Need to know because i have to sign a contract with the buyer asap. I am paying for the buyer's closing ($6K) so that my house will sell higher and quicker.

Answer 1

You are taxed on your capital gains, which is the difference in the price you paid, minus the price you get, minus home improvements, and cost of selling, which includes the seller contribution for the buyers closing costs. Best bet is ask your tax adviser for what pertains to your particular case.  I am assuming you are talking about federal income tax?