A few things in life are certain, and taxes are one of the least enjoyable ones. For real estate agents that are guiding their customers through one of the most important financial decisions of their life, it’s vital to understand that they are likely to have tax implications when buying or selling a home and to know how to get them started on the right path to properly file.
Jake Alexander, President of Action Accounting in Clearwater, states that "it’s very important for real estate agents to advise their clients to know their dates and know their numbers, so they can file properly the first time and not have to deal with a surprise letter from the IRS years down the road."
Luckily, Paramount Title is equipped with a secure portal that allows YOUR buyers and sellers to pull their documents in the privacy of their own home.
Both buyers and sellers can login to the same portal they used when purchasing or selling their home and navigate to the documents section to find their tax documents.
- Buyers should pull their ALTA statement from the "SETTLEMENT STATEMENT" section of the portal. They should also keep track of purchase documents and improvements they make to their home to reduce their tax liability within the 24-month exemption of capital gains in case of the sale of the property.
- Sellers will need to pull the 1099 forms provided on the portal and report those on their taxes. The issue of tax liability when selling their home will rely on many factors, and they should seek the advice of a tax professional to answer any questions.
Be sure to mention the availability of these documents to your buyers and sellers throughout the year and consider setting up a calendar reminder to touch base with all of them at tax time. They'll appreciate the reminder!
As always, if you need any assistance with helping your customers locate their documents, please feel free to reach out to the Paramount Title team!