Will I owe taxes on my rebate?

The IRS has issued a private letter, see PLR 157111-06, stating that refunds of commissions by a real estate broker are not taxable income. Per the ruling:

Per the ruling

• Broker WILL NOT issue a Form 1099 (Miscellaneous Income) form to you.
• Buyer must treat the refund as a reduction in the cost of the property for tax filings.

IMPORTANT: Always consult with your tax professional for tax related questions. Your tax professional is most qualified to advise you concerning your specific tax situation.