Selling property
Posted date : Jan 13, 2023.
My wife and I are thinking of selling our property in Florida and would like to know the steps in the process. I assume that we would go through a lawyer when it sells, but are there any U.S. taxes and/or fees which we would need to pay? We have heard conflicting stories from others who have sold. Thanks for clarifying this issue.
David Trainor
Upper Coverdale, NB
Ed.: Assuming that the property is real estate (not a manufactured home) and that the sale would be through a real estate agent, the paperwork and money handling would be by a title company. In Florida, the seller must guarantee good title to the buyer, and the seller does this by purchasing a policy of title insurance through a title company. Costs involved would be the real estate commission, and the “closing costs” referred to in the sale agreement – which would include the price of the title insurance and the title company fees. If the sale would generate a profit, capital gains tax would be payable. Gain or not, 15% of the sale price would be sent by the title company to the IRS (unless the property qualifies for an exemption) and, in the year following the sale year, a U.S. tax return has to be filed. In that return, claim can be made for refund of any amount in excess of any tax payable. A lawyer’s involvement would be minimal, to review the sale agreement and guide you through the process.
