Comments on: The Taxman Does Not Cometh http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html Redfin Corporate Blog Sun, 22 Nov 2009 20:09:04 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: jDeppen http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-6483 jDeppen Fri, 18 Sep 2009 06:22:07 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-6483 I would assume that this is similar to refi money not being taxable. It's a loan not income, the buyer is paying it back. If it's a cash deal then it's the buyer's money being returned. IMO I would assume that this is similar to refi money not being taxable. It’s a loan not income, the buyer is paying it back.

If it’s a cash deal then it’s the buyer’s money being returned.

IMO

]]> By: Anders http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-5809 Anders Tue, 12 May 2009 20:23:15 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-5809 But does the refund create taxable income to Redfin in the full amount or just their undistributed portion that is kept by Redfin? But does the refund create taxable income to Redfin in the full amount or just their undistributed portion that is kept by Redfin?

]]> By: WSK http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-2800 WSK Sun, 16 Mar 2008 16:22:11 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-2800 Thank you for posting the IRS ruling on your blog. Unlike the IRS agents that I consulted on this issue in multiple telephone calls, It was very helpful last year in deciding how to deal with this issue when preparing my taxes. Thank you for posting the IRS ruling on your blog. Unlike the IRS agents that I consulted on this issue in multiple telephone calls, It was very helpful last year in deciding how to deal with this issue when preparing my taxes.

]]> By: PlanOpen http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-2700 PlanOpen Fri, 22 Feb 2008 02:50:53 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-2700 Love the costume! Love the costume!

]]> By: Bob http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-2433 Bob Thu, 17 Jan 2008 16:27:32 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-2433 The ruling is legit - check out the IRS website http://www.irs.gov/pub/irs-wd/0721013.pdf The ruling is legit – check out the IRS website

http://www.irs.gov/pub/irs-wd/0721013.pdf

]]> By: Pamela Mullen http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-2358 Pamela Mullen Fri, 28 Dec 2007 18:22:14 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-2358 Commission is paid to agents at the closing of a home, they recieve the money which is then tax due income to the agent/broker; 2/3 of the received money is then refunded to the buyer after closing; (it has to be refunded after closing because as it is not available to agents/brokers until the home closes meaning funds are transfered from buyer to seller) if received after closing the money is not available to buyer's for closing costs. If money is sent to buyers after closing that money is income/gain to buyers and should be taxed like any other income. If the money is from the broker's account then the broker has received the money and owes tax. If the buyer receives money from the broker, the buyer owes taxes. By giving the buyer 2/3's of 3% of the purchase price of a property Redfin is saying to the buyer; you just paid 2/3's of 3% more for this home than the actual value of that property. If the home is actually worth 2/3 of 3% less, then why not just pay that much less for the home, lower your closing costs, cut out everyone's playing around with unearned money and avoid the risk of owing tax on the inflated home value? Why is failing to pay tax on unearned income received represented as a positive thing? Is there any chance that the IRS may come back on these individual buyers with a determination of tax owed for money received from agents/brokers after closing? Nation wide this must be millions of unpaid tax dollars, usually the IRS does not give up that kind of money, why is this any different? Why not just pay the real and fair price for the house and everyone just pays the tax they owe and be done with it? Commission is paid to agents at the closing of a home, they recieve the money which is then tax due income to the agent/broker; 2/3 of the received money is then refunded to the buyer after closing; (it has to be refunded after closing because as it is not available to agents/brokers until the home closes meaning funds are transfered from buyer to seller) if received after closing the money is not available to buyer’s for closing costs. If money is sent to buyers after closing that money is income/gain to buyers and should be taxed like any other income. If the money is from the broker’s account then the broker has received the money and owes tax. If the buyer receives money from the broker, the buyer owes taxes. By giving the buyer 2/3’s of 3% of the purchase price of a property Redfin is saying to the buyer; you just paid 2/3’s of 3% more for this home than the actual value of that property. If the home is actually worth 2/3 of 3% less, then why not just pay that much less for the home, lower your closing costs, cut out everyone’s playing around with unearned money and avoid the risk of owing tax on the inflated home value? Why is failing to pay tax on unearned income received represented as a positive thing? Is there any chance that the IRS may come back on these individual buyers with a determination of tax owed for money received from agents/brokers after closing? Nation wide this must be millions of unpaid tax dollars, usually the IRS does not give up that kind of money, why is this any different? Why not just pay the real and fair price for the house and everyone just pays the tax they owe and be done with it?

]]> By: Tax Man http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-1713 Tax Man Thu, 27 Sep 2007 23:44:57 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-1713 I am very wary about this whole situation, how do know the attorney they paid for the petition didn't cook something up. The supposed ruling looks like somethign done on a typewriter. For starters, the format is not in line with what the IRS sends out, yes it looks similar, but there variations. It is also lacking a barcode to track the ruling notice, and most alarming of all, it does not have the IRS logo, and it came from Washington D.C. any seasoned tax pro knows that the IRS does not have a service center in D.C. Oh forgot to mention the disclaimer, according to that, this only applies to Redfin, why people would try to use this as tax advice has me bewildered. Consult directly with the IRS, you don't need to pay an attorney to write a pettition contact your local IRS office and ask for written clarifaction concerning a matter, saves you a truckload of money and then you can get your correspondance from the IRS. If you happen to get audited, provide a copy of your correspondance to you or your company and watch how easy the audit is. I am very wary about this whole situation, how do know the attorney they paid for the petition didn’t cook something up. The supposed ruling looks like somethign done on a typewriter. For starters, the format is not in line with what the IRS sends out, yes it looks similar, but there variations. It is also lacking a barcode to track the ruling notice, and most alarming of all, it does not have the IRS logo, and it came from Washington D.C. any seasoned tax pro knows that the IRS does not have a service center in D.C.

Oh forgot to mention the disclaimer, according to that, this only applies to Redfin, why people would try to use this as tax advice has me bewildered. Consult directly with the IRS, you don’t need to pay an attorney to write a pettition contact your local IRS office and ask for written clarifaction concerning a matter, saves you a truckload of money and then you can get your correspondance from the IRS. If you happen to get audited, provide a copy of your correspondance to you or your company and watch how easy the audit is.

]]> By: Stephen Graham http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-522 Stephen Graham Sun, 27 May 2007 14:31:34 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-522 Kids play? You act as though the consumer can?t make his/her own informed decision. There are many savvy home buyers who understand fully how a real estate transaction works and thus seek out a rebate of commission. It?s our job, as professionals, to present to the consumer all options. We then consult with the consumer as to the pros and cons of said options. The consumer then makes his or her own decision. Stephen Graham www.georgia-new-homes.net Kids play?

You act as though the consumer can?t make his/her own informed decision. There are many savvy home buyers who understand fully how a real estate transaction works and thus seek out a rebate of commission. It?s our job, as professionals, to present to the consumer all options. We then consult with the consumer as to the pros and cons of said options. The consumer then makes his or her own decision.

Stephen Graham
http://www.georgia-new-homes.net

]]> By: T Morones http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-521 T Morones Wed, 16 May 2007 01:41:24 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-521 I feel sorry for the consumer, buying a house is not the same as buying a book or trading stocks on line. Redfin is treating the complex and somewhat litgious world of real estate as kids play. Once this concept implodes the consumer will once again get burned. The lawyers will benefit in the end once the lawsuits begin. I feel sorry for the consumer, buying a house is not the same as buying a book or trading stocks on line. Redfin is treating the complex and somewhat litgious world of real estate as kids play. Once this concept implodes the consumer will once again get burned. The lawyers will benefit in the end once the lawsuits begin.

]]> By: T Morones http://blog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html/comment-page-1#comment-520 T Morones Wed, 16 May 2007 01:40:17 +0000 http://devblog.redfin.com/blog/2007/03/the_taxman_does_not_cometh.html#comment-520 I feel sorry for the consumer, buying a house is not the same as buying a book or trading stocks on line. Redfin is treating the complex and somewhat litgious world of real estate as kids play. Once this concept implodes the consumer will once again get burned. The lawyers will benefit in the end once the lawsuits begin. I feel sorry for the consumer, buying a house is not the same as buying a book or trading stocks on line. Redfin is treating the complex and somewhat litgious world of real estate as kids play. Once this concept implodes the consumer will once again get burned. The lawyers will benefit in the end once the lawsuits begin.

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