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Rainmaker
5,772,353
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

This is a question for an accountant or a Financial guru.  It has nothing to do with real estate practices.  We are not accountants or attorneys.  Your seller should see advice from pros.  A

Dec 07, 2018 11:30 AM
Rainmaker
7,788,323
Roy Kelley
Retired - Gaithersburg, MD

Do not expect the closing attorney to be involved in your personal tax returns. 

Dec 07, 2018 11:33 AM
Rainmaker
244,579
Jerry Thomas-Construction Loans
Cranbrook Loans - Farmington Hills, MI
Construction Loans in MI, OH, PA, VA, GA and FL.

In Michigan, the title company sends the IRS a statement regarding the sale; the property, sale price, sale date, the seller and the buyer. It's up to the seller and buyer to follow up with the IRS. 

Dec 07, 2018 11:30 AM
Rainmaker
1,498,148
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Consult your anonymous attorney and CPA.

Dec 07, 2018 02:50 PM
Rainmaker
503,295
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

The closing attorney or title company should provide a Form 1099-S, Proceeds From Real Estate Transactions. It is then up to the seller or the sellers tax pro to determine if any tax liability exists.

See IRS Publication 523 Selling Your Home for more detail than your instructor will want.

Dec 07, 2018 02:30 PM
Ambassador
6,353,356
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Not enough info here to answer, or enough time, lets start with what state are you in?

Do you have a broker?

Who is doing the closing?

Have you asked them any of these questions?

Dec 07, 2018 12:37 PM
Rainmaker
2,373,176
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

The seller needs to talk to a tax professional.

Dec 07, 2018 12:26 PM
Ambassador
2,679,149
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

    Talk with a CPA, face to face, for the answer to your question.   

      

Dec 07, 2018 12:21 PM
Ambassador
3,339,049
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Great question for your seller to ask a CPA, Tax Attorney or other qualified professional. 

Ask a closing attorney what they provide at closing. 

We do not use attorneys in CA.  Even if we did, I would not be answering this tax question. I do not have a license to give tax advice. 

Dec 07, 2018 05:05 PM
Rainmaker
1,153,744
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

No, although the IRS may provide such a document after filing.

Dec 07, 2018 03:03 PM
Rainmaker
1,712,551
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Ask them.

Dec 07, 2018 02:45 PM
Rainer
373,780
Don Baker
Lane Realty - Eatonton, GA
Lake Sinclair Specialist

In my experience the question gets asked at closing and the sellers signs a document stating that.  If the answer is no they do indeed get a 1099.  I'm sure different attorneys handle it differently though.  But in my personal closings there is a form for that.

Dec 07, 2018 02:03 PM
Rainer
422,942
J.R. Schloemer, CRS
Kentucky Select Properties - Louisville, KY

Contact the closing attorney and have the seller contact their CPA. Their tax situation is different that every other filer, and we are not licensed to practice in those two fields. 

Dec 07, 2018 01:42 PM
Rainmaker
1,294,471
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Our closings do not include attorneys...only escrow officers. A notice of the sale is reported to the taxing agency whether sold in more or less than two years. It is up to the seller to sort it out for tax filing purposes. Professional help is advised.

Dec 07, 2018 01:41 PM
Ambassador
5,032,656
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

You should seek advice from your tax professional on these matters, and tax docs might differ by state.

Dec 07, 2018 01:19 PM
Rainmaker
5,583,167
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

that's a question for a CPA or a tax attorney... don't try to wear those hats... they won't fit...

Dec 07, 2018 01:19 PM
Rainmaker
706,832
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

The seller should discuss this with their CPA.

Dec 07, 2018 01:13 PM
Rainmaker
897,818
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Attorney/accountant question and may depend on what state you are in as well.

Dec 07, 2018 12:19 PM
Rainmaker
2,070,825
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL

HUD and previous HUD and repairs to be submitted to CPA.

Dec 07, 2018 12:08 PM
Rainmaker
1,598,452
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

No idea. Sorry. Ask CPA.

Dec 07, 2018 11:49 AM
Rainmaker
5,096,266
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I don't know. Check with a real estate attorney. I don't give out tax advice either for capital gains. Check with a tax specialist.

Dec 07, 2018 11:45 AM
Rainmaker
1,189,102
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

I would always consult a CPA regarding questions like this

Dec 08, 2018 06:21 AM
Rainmaker
3,415,644
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

The seller handles their own taxes, or hires an accountant. You need your tax focs when you bought and again when you sell. 

Dec 08, 2018 05:54 AM
Ambassador
2,415,715
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I don't know, but I'm thinking the seller won't have much in terms of gains if they only purchased the home two years ago. At least in my area.

That's a good question for a tax expert.

Dec 08, 2018 02:47 AM
Rainmaker
1,619,091
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Depends

Dec 07, 2018 10:12 PM
Rainmaker
1,237,270
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

HUD closing statement=> CPA

Dec 07, 2018 05:10 PM
Rainmaker
4,553,278
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

I like the answer provided by Ron and Alexandra. 

Dec 07, 2018 12:34 PM
Rainmaker
5,191,617
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Check with your accountant for the corect answer! 

Dec 08, 2018 05:40 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

It is probably the sellers' responsibility.

Dec 08, 2018 05:24 AM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Ask your accountant.

Dec 08, 2018 02:03 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Call an anonymous CPA

Dec 08, 2018 07:27 AM
Rainmaker
1,045,440
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality #WeWillGetYouHome

While real estate agents may or may not know this.. unless they are certified tax professionals or CPA they shouldn't be asked this question. Ask a Tax Attorney, CPA etc.. and call them anonymously see if that helps 

Dec 13, 2018 07:08 PM
Rainmaker
5,848,499
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Title will send the government notice that there will be capital gains.  How that works - call a CPA or an accountant.

Dec 12, 2018 08:03 AM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

each state cold have their ownn rules

Dec 09, 2018 04:22 PM
Rainmaker
1,088,137
Diana Zaccaro Broker Associate
Tropical Beachside - Cocoa Beach, FL
"The Accidental Blogger" Cocoa Beach, Florida

This sounds state specific...most closings here are not handled by attorneys. If you are an agent, have your seller consult their CPA and tax attorney for help. If you are the seller,do the same. 

Dec 08, 2018 08:49 PM
Rainmaker
4,134,669
John Pusa
Glendale, CA

Many good responses.

Dec 08, 2018 01:48 PM
Ambassador
5,202,100
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

In NC & SC, our attorneys require the form 1099-S be signed. The sellers are also advised to handle this matter with their CPA at that time as well.

Dec 08, 2018 09:36 AM