Home Selling in 30078>Question Details

House101, Home Seller in 30078

If the buyer wants the furniture and I do a separate contract for the furniture, how do i pay taxes on the furniture that i sell

Asked by House101, 30078 Fri Jun 10, 2011

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The answers here are correct, but let me throw something in. You'll need to do a Personal Property Bill of Sale, write down the items included, and make sure to have the prices at $0. If necessary, roll the price of the furniture into the price of the house, if you haven't submitted that contract already. The reasons for this are multiple. One, and it's not a tax issue on your end, since you don't need to worry about that unless you're actually making money on your furniture above and beyond what you originally paid for it, but it is a loan issue. It can affect the terms and down payment amount of the loan. Also, it just muddies the waters, so it's generally easier to keep it simple and let the furniture go for free.

Of course, if the contract is already done and submitted, and the buyer is paying cash for the furniture, then it's really not that difficult, just do the contract and call it a day, just don't submit it with the other paperwork. It's technically none of their business. And again, unless you're actually making money off the furniture, no tax implications.

Just to cover my butt on this, check with an accountant, but I'm pretty sure I'm right on the tax part....
0 votes Thank Flag Link Sat Jun 11, 2011
The sale of personal property such as furniture, cars, etc. is handled on a "Bill of Sale". This can be handled through escrow as well and is usually considered a separate transaction - not lumped into the price and sale of the home. As of any fees associated with the sale of personal property you will have to consult your local tax laws and it is advisable to discuss it with your trusted tax adviser.

In the event of personal property and trade fixture in the sale of a business, those, at least in California, require reporting to the Sales and Use Tax Board, fees paid, and a Bulk Transfer Notice for the Business. But it doesn't appear this is your question.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Jun 10, 2011
Usually a furniture sale is technically handled outside of closing, so it is not something that the closing company will get involved in. Think of this part of the transaction like selling all your furniture in a yard sale or on Craigslist. You may have a contract, but it is still not like selling the home.
0 votes Thank Flag Link Fri Jun 10, 2011
Hello,
I believe that you don't pay taxes on re-sale furniture as you already paid the sales tax when you purchased it. Consult a tax advisor to be certain as they are the experts.

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Fri Jun 10, 2011
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