What the Seller’s cost basis numbers?

Question

Question...Were are getting ready to closing....

And I attorney needs a copy of the Seller’s Trust Agreement and the Seller’s cost basis numbers to complete the Closing Statement and the Gain Affidavit.

What are the Seller's Cost Basis Numbers?...

is it  a tax form, IRS form, or spreadsheet...

Steve Vaughan · Answer

I just did a conventional sale through a title co.  The questionnaire mainly dealt with exchanges and foreign entities.  It didn't ask for us to break down our cost basis, cap improvements or depreciation recapture.  I hadn't even seen this questionnaire before and figured it was new since the changes adopted 10/1.

I would ask a title co for that form and submit it.  It seemed standardized for Fed/IRS compliance.

Wayne Brooks · Answer

Closing/escrow co.s have to report the Net proceeds from a sale to the IRS, not someone's "gain".

Jeff B. · Answer

These are the numbers for Captial Gains withholding

Chris Soignier · Answer

That's strange, I've never been asked for my cost basis at closing.   That's between me and the IRS.    Unless I'm missing something...

Yinan Q. · Answer

I would ask the attorney to clarify. Sounds like the attorney is asking for how much the seller paid when purchasing the property. Again, check with the attorney.

Wayne Brooks · Answer

NA Beard If it's a foreigner, subject to FIRPTA, the withholding is 10% of the sales price. There's no "gain" calculation involved.  Still have no idea why this attorney feels the need to calculate someone's gain.

Jeff B. · Answer

I think the issue is not the gain per se, but the correct withholding to take to avoid penalties later.

Jeff B. · Answer

The IRS States:

https://www.irs.gov/Individuals/International-Taxpayers/Withholding-on-Specific-Income

The list below includes some specific types of income. Most of these types of income are discussed in Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities under the heading Withholding on Specific Income.

• Income from Securities
• Income Paid to U.S. Branch of a Foreign Bank or Insurance Company
• Interest
• Dividends
• Capital Gains (Income Code 9)
• Royalties
• Real Property Income and Natural Resources Royalties (Income Code 13)
• Pensions, Annuities, Insurance Premiums, and/or Alimony (Income Code 14)
• Scholarships and Fellowship Grants (Income Code 15)
• Pay for Personal Services Performed
• Pay for Independent Personal Services (Income Code 16)
• Pay for Dependent Personal Services (Income Code 17)
• Pay for Teaching (Income Code 18)
• Pay During Studying and Training (Income Code 19)
• Artists and Athletes (Income Code 20)
• Real Estate Investment Trust (REIT) and Other Trusts Distributions Subject to IRC section 1445 (Income Codes 24 and 25)
• Unsevered Growing Crops and Timber Distributions by a Trust Subject to IRC section 1445 (Income Code 26)
• Publicly Traded Partnership Distributions Subject to IRC section 1446 (Income Code 27)
• Gambling Winnings (Income Code 28)
• Notional Principal Contract Income (Income Code 32)
• Substitute Payment - Other
• Capital Gains Distributions
• Other Income (Income Code 50)

Kareem Wyatt · Answer

Thanks, Guys...Its has to deal reporting sale amount to Irs using a 1099, and its opitonal,...Yes, @Chris S its between the seller and irs...We didnt have to show anything to the attorney.

What the Seller’s cost basis numbers?

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