Fremont, California
T-ReX Property Management Software for real estate investors to save them TIME and MONEY
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Fremont, California
Niman Singh has starred 59 Blog Entries.
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Sep. 26, 2008
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Help your Sellers, Help Yourself |
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Help your sellers minimize the taxable gain from the sale of
their property by helping them account for sale expenses, like closing costs.
It's as easy as sending a copy of their settlement statement and circling a bunch of
numbers. This will help you cultivate relationships with past clients, and
increase future business.
Read this blog
to learn why this is important and why
it works!
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What are Closing Costs?
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Closing costs are expenses (above and beyond
the cost of the property itself) that are
incurred by the buyer and seller during
"closing," when title
of the property is
transferred.
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Where are my Closing Costs?
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Closing costs that you
need to consider can be found on the
property's settlement statement.
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What Should I do with Closing
Costs?
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To minimize your taxable gain from the sale,
follow these steps:
- Locate the Contract Sales Price (Line 401) on the settlement statement.
- Subtract Commissions Paid (Line 703).
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Subtract Title Charges (Lines 1100-1110), Recording and Transfer Charges (Lines 1200-1205) and Additional Settlement Costs (Lines 1300-1302).
- Subtract the property's adjusted cost basis (after depreciation deductions), which will be found on the prior years' tax return.
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Following these steps
will help your seller minimize the taxable
gain from the sale of their home by
accounting to deductible sale expenses.
They are likely to use your services again
in the future because you've gone out of
your way to help them save money. This
is certainly a good way to cultivate
relationships with your clients.
By all means, I am
not saying that you should give tax advice
to your clients - that's what tax advisors
are for....but it certainly is a great
feeling when you know what you are talking
about, understand the resources that are
available, and are able to point clients in
the right direction.
To learn how to save
money on your real estate investments and
for free property management software, check
out all the investor web tools from
TReXGlobal.com. |
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