New Rules Affecting Buyers and Sellers of Real Estate

Are you currently selling your home or shopping for a new one? If so, you should be aware that the CFPB (Consumer Fraud Protection Bureau) has new rules that go into effect on August 1, 2015! These rules apply to all “closed- end consumer credit transactions secured by real property”, meaning purchase money mortgages, refinances, timeshares, construction only loans and parcels 25 acres or less. The sale and purchase of vacant land, which was previously considered a commercial transaction, is also subject to the new rules. Home Equity Lines of Credit, reverse mortgages, mobile home loans, commercial transactions and private lenders originating less than 5 loans per year (e.g., Articles of Agreement) are exempt from the new rules and forms.  Read More >

Answer: The answer to that question is “yes”, which may be surprising to some tax practitioners. Cash basis taxpayers recognize income when payment is received. Payment does not include evidences of indebtedness, such as a note, of the person acquiring the property (IRC 456(f)(3)). A note is an evidence of indebtedness. Read More >

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