Ellen was a wonderful realtor to work with. Refreshing approach to selling homes. She believes the home will sell itself. No fluff no stuff. She is honest and straight forward. We appreciated this about her. She made herself available to us from the start and never let up all the way through closing. She was informative about the area since we were moving from out of state and this was a big help. Our daughter recommended her because she had been her buyer's agent. I appreciated how she had helped my daughter with the purchase of her 1st home. So Ellen thank you on two counts!.Happy Home Owner for Ellen Hough
Our experience with Ellen Hough as our realtor was wonderful. Moving can be a stressful time especially if you are moving from another state. Ellen was very helpful and very knowledgeable about this area. She went above and beyond our expectations. She was always there for us if we had any questions or concerns and made us feel like we were her only clients! Ellen Hough did a outstanding job and I would recommend you to use her as your Realtor.Noi L. for Ellen Hough
Ellen is without a doubt the BEST agent we've ever had the pleasure of doing business with. Not only did she take us around to numerous (14+) houses in the Jacksonville, NC area, she was extremely honest. Ellen was straight forward with her opinions of the places she was showing and we were so happy to have someone so open and helpful. She stuck with us through six weeks of a battle to buy a "short sale" and then put up no fight when we backed out of the short sale and moved on to the home we did eventually buy.
I look forward to all of our future business with Ellen and her wonderful team at EXIT Independence Realty. She's not only our buying agent but her company is also our property manager for our rental property. She's amazing. You'll love her...happy home buying!Nikki L. for Ellen Hough
Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service.
This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S.
To help you better understand this subject, the Land Title Association has answered some of the questions most commonly asked about Required Reporting to the I.R.S.
Who is required to report to the I.R.S.?
Sellers of real property, under guidelines established by the I.R.S., are required to have their gross proceeds from the sale reported on a Form 1099S. When a settlement agent is used, the I.R.S. makes this agent responsible for the delivery of the information on the Form 1099S.
The settlement agent generally will be the escrow agent or title company; however, it may be an attorney, real estate broker or other person providing settlement services.
What is an I.R.S. Form 1099S, and what will be reported?
The Form 1099S is the reporting form adopted by the I.R.S. for submitting the information required by law.
The information will be transferred onto magnetic media by the settlement agent who will store the information and make the required report to the I.R.S. The settlement agent is also responsible for keeping a master copy of all transactions reported.
In general, information required by the I.R.S. falls into the following categories:
The name, address and taxpayer ID number (social security or tax identification number) of the seller(s)
A general description of the property (in most cases an address)
The closing date of the transaction
The gross proceeds of the transaction (even though gross proceeds do not correspond to taxable income)
Any property involved as part of the transaction other than cash or cash equivalent
The name, address and taxpayer identification number of the settlement agent.
Real estate tax paid in advance that is allocable to the buyer.
On what type of transactions is a Form 1099S required?
Currently, typical homeowner transactions covered include sales and exchanges of 1-4 family residential properties such as houses, townhouses, and condominiums. Also reportable are sales or exchanges of improved or unimproved land, commercial or industrial buildings, condominiums, stock in a cooperative housing corporation and mobile homes (manufactured homes) affixed to real property.
Specifically excluded from reporting are foreclosures and abandonment of real property and financing or refinancing of properties.
What happens if the seller(s) refuses to provide the taxpayer identification number for the Form 1099S?
The settlement agent is required to request the transferor’s taxpayer identification number(s) (TIN(s)) before the time of closing. You may request a TIN on Form W-9 or use an alternative written request. The IRS has included sample wording of an alternative written request in the instructions for preparation of Form 1099S.
Should the seller fail to provide the identification number and certify its correctness, the settlement agent may choose to:
Delay the closing of the transactions until the information is furnished, or
Complete the transaction and report to the I.R.S. that an attempt was made to obtain the information from the seller.
How is the sale reported when there is more than one seller involved or when multiple sellers do not own equal interests in the property?
Multiple sellers may allocate the gross proceeds among themselves for purposes of reporting. If there is no allocation, an incomplete allocation or conflicting allocations, then the entire gross proceeds will be reported for each seller.
Where can I go for further information on taxation of real property?
The I.R.S. provides free publications that explain the tax aspects of real estate transactions. You may wish to order:
Publication #523 “Tax Information on Selling Your Home”
Publication #530 “Tax Information for Home Owners”
Publication #544 “Sales and Other Dispositions of Assets”
Publication #551 “Basis of Assets”
To place your order, phone toll-free (800) 829-3676.