I almost can't believe that our client cant fill out the 1099s questionnaire from the title company himself, because the seller is a realtor and the questions are so simple.
My first reaction is to tell him to go line by line and do it himself, but I have been bitten by that advice and I am not so fast to suggest that anymore.
The entire form is below. Client is a retail $750 schedule C client - no tax planning, no nothing, just 1040 with C and state.
On one hand, I could have done it in the time it takes to post about it. On the other hand, what if I do it wrong and need to file a correction, etc. And why can't the realtor invest the intellectual energy it takes to read the form and answer its questions?
What do you charge?
1.
Sellers Name (First, MI, Last or Entity Name)
Federal Tax ID# for this seller
(List only the Tax ID# for the seller listed on Line 1, spouse
Tax ID# not required. Executor/Trustee should not list their
name as the seller unless they are going to report the
proceeds on their personal income tax return. Disregarded
entities should provide the name and Tax ID# of the
responsible person/entity.)
TOTAL CONSIDERATION
$ Total Consideration Exchange (If checked)
% Percentage of ownership for this seller
$ GROSS Allocated Proceeds
(Total consideration multiplied by percentage of ownership)
$ Tax Credit to Seller (Real property tax
credits to seller contained in the 400 series of the
HUD-1 or comparable closing statement form).