HUD closing statements, sale of real estate

Practical and Practice issues for Professionals who practice in the area of taxation. Moral, social and economic issues relating to taxes, including international issues, the U.S. Internal Revenue Code, state tax issues, etc. Not for "tax protestor" issues, which should be posted in the "tax protestor" forum above. The advice or opinion given herein should not be relied on for any purpose whatsoever. Also examines cookie-cutter deals that have no economic substance but exist only to generate losses, as marketed by everybody from solo practitioner tax lawyers to the major accounting firms.
Famspear
Knight Templar of the Sacred Tax
Posts: 7172
Joined: Sat May 19, 2007 1:59 pm
Location: Texas

HUD closing statements, sale of real estate

Postby Famspear » Fri Aug 06, 2010 6:33 pm

OK, this is a tax practice comment.

Well, it's a tax practice gripe, actually.

What is the number one deficiency in the standard Form HUD-1 for closings on real estate transactions?

See:

http://www.hud.gov/offices/adm/hudclips ... iles/1.pdf

Answer: Boxes 504 and 505 on the seller's side of the form.

HUD could save accountants who prepare federal income tax returns lots of time and work (and help us avoid delays) by simply changing the standard form to require separate lines (separate boxes) for the principal, interest, and other charges that are components of the total payoff.

Not only that, but NO EXTRA WORK would be required of anyone. The lender already has all that information when the lender provides the total payoff amount to the preparer of the HUD-1. Indeed, that detailed information is NEEDED in order to compute the amount that currently goes in box 504 or 505. Providing the detail would actually aguably REDUCE the work involved for the lender and the preparer of the HUD-1 (i.e., one less computation required, since there would be no need to add the figures together).

Simple thing like this could save so much time and aggravation for people like me. I have to send a letter or email, make phone calls, provide explanations, etc., just to obtain data that was readily available at the time the HUD-1 was prepared. By the time I (as the tax return preparer) am involved, the "file" for the closing on the sale is already in storage somewhere (if it's not saved electronically on a computer).

If only accountants ruled the world......
...why is anyone in this [losthorizons] community paying the least attention to...'Larry Williams' [Famspear], or other purveyors of disinformation from...quatloos? – Pete Hendrickson, former inmate 15406-039, Fed’l Bureau of Prisons

Return to “Tax Practice & Policy and Tax Shelters”

Who is online

Users browsing this forum: No registered users and 2 guests