Remodel allowance for selling a home

[Denise]

If a seller returns money from the sale of their home to the buyer, is there a special remodeling allowance to offset the gain of the sale?

[Gary2]

If a seller returns money from the sale of their home to the buyer, is there a special remodeling allowance to offset the gain of the sale?

I'm not sure what you mean by "returns money".

If the seller credits the buyer with some amount of funds at closing, that would be a price reduction. I wouldn't call it a remodeling allowance. Depending on the closing agent and the form of the credit, it may or may not be factored into the 1099-S. If it's not taken into account by the 1099-S, then treat it as a selling expense.