HUD closing statements, sale of real estate
Posted: Fri Aug 06, 2010 5:33 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......
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......