Selling Real Estate

Organize your property details, timing and questions before evaluating what comes next.

Start with the property and its owner.

Describe the type of property, how it has been used, and the person or entity selling it. A personal residence, rental property and business property can raise different questions.

Planning or under contract

Separate agreed terms from estimates. Note the expected closing date, debt to be paid off and any payments expected later.

Already closed

Keep the closing statement and relevant property records for professional review. Use actual dates and amounts where available.

Prepare a clear transaction summary.

1. Ownership and use: who owns or sold the property, and whether it has had business, rental or personal use.
2. Closing and cash: actual or expected date, cash received, debt payoffs and amounts expected later.
3. Gain review: the person reviewing the tax estimate and the records still outstanding.
4. Your next chapter: money needed for commitments and questions about future investments.

Questions for your CPA or tax attorney

• What adjusted basis and selling-cost records do you need?
• Does the property’s use or depreciation history affect the analysis?
• Are all parts of the transaction treated the same way?
• Which payment dates need separate review?

The IRS addresses sales of business and rental assets in Publication 544. Ask your professional team to identify the guidance appropriate to your property and transaction.

Compare the full investment decision.

Ask about potential loss, fees, distributions and access to cash. Do not assume a strategy provides the same rights or flexibility as the property you sold.