4) Are There Any Tax Consequences To Closing?
Home sellers need to remember that any reimbursement received at settlement for previously deducted property taxes is considered income and is taxable. The IRS can now track property tax reimbursements thanks to a law which requires all title companies, escrow agents and brokers involved in a home sale settlement to provide the IRS with the seller's Social Security number and the amount of property tax reimbursement. |