Jan
23
Legal Tip: What paperwork do you need if you bought or sold in 2011?
Posted by mcalister under For Buyers, For Sellers, General Information, Legal Tips
Buyers:
1. HUD-1 Settlement Statement – needed for income tax preparation – pay attention to closing costs, prepaid interest, property tax prorations, and other fees that may be deductible;
2. Recorded Warranty Deed (or other deed such as Limited Warranty Deed, Special Warranty Deed, Quit Claim Deed, Executor’s Deed, or Trustee’s Deed) – needed to claim homestead exemption – must provide recording Deed Book and Page from recorded deed.
Sellers:
1. HUD-1 Settlement Statement – needed for income tax preparation to show sales price and all costs of sale (closing costs, commission, property taxes, etc.)
2. 1099 form – usually provided at closing by the closing attorney – shows gross sales price plus any prorated taxes that are being credited to the seller (in case the seller tries to deduct the entire year’s property taxes). The 1099 forms are no longer mailed out; there is an electronic report sent by each closing attorney directly to the IRS. Note: most residential sales are non-taxable events (principal residence or no gain), but the seller will still have a 1099 and must still file the appropriate income tax forms.
By Leigh Clack, Attorney
Neel & Robinson Attorneys at Law, LLC
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