I am about to close on my house. The title company called me today and said that the lender wants to know what i paid for house. I paid 35,000 and

Twist6909
Home Seller
Kokomo, IN

put 23,000 into it. I need to sell it not for a profit but to pay the IRS. selling for 65,500. Why does the lender want to know the price that i paid for it, and will they go ahead with the loan?

Answers (1)
First to answer: Betty
Betty
Agent
Kokomo, IN
FIRST ANSWER

Twist -

Did you check with your realtor to see if they can find out why they are asking this? If you don't have an agent, you'll need to contact the lender that asked what you paid? I'm guessing it has something to do with many of the changes in lending and some of the "anti-flipping" rules.

Incidentally, you may want to check with you CPA, I believe whatever you make over and above what you paid for the house plus your documented expenses for improvements and your selling costs is considered profit - whether you put it in your pocket or send it to the IRS.

Wed Sep 16 2009, 16:22

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