January 28, 2015

What U.S. Relocation Experts Need to Know: Tax and Legal Update

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What U.S. Relocation Experts Need to Know: Tax and Legal Update

Back in December, Pam Uhl and I conducted an eLearning covering what’s new—and not so new—in the relocation legal arena. For those of you who couldn’t attend, we are happy to release our latest edition of Mobility Insights, which provides more detail on the topics covered in the eLearning. We’ve categorized these updates into issues worth revisiting, even though they’ve been around for a few years; and new trends and regulations that we are seeing. In this tax and legal update, you will find:

New Takes on Old News

•  The One-year Rule: We detail the intricacies of this IRS regulation, which determines whether a household goods shipment and final family move are taxable or non-taxable to the employee.

•  One Deed vs. Two Deeds: Though one-deed transactions for relocation home sales are the standard, several situations exist in which a two-deed transaction may be advisable or required by state law.

•  Home Sale Programs vs. Direct Reimbursement: Directly reimbursing an employee’s home sale costs may seem advantageous, but how do the pros and cons balance out versus a tax-protected home sale program?

New Trends and Regulations

•  HUD-1 Settlement Statement Replacement Begins August 1, 2015: New loan estimate and closing forms will be required in August. We detail the changes to (and new jargon used in) the forms.

•  Solar Panels: Solar panels are becoming more and more common. However, they can add an extra layer to a relocation home sale, particularly if the solar panels are leased.

•  Bidding Wars: Bidding wars are back in many key markets. This can be a very good thing for the transferee, but it’s important to make sure that a relocation expert is involved in the transaction.

•  Stone Veneer: Although stone veneer is very popular, it’s important to have a proper inspection if a transferee sells a home with this feature.

View the entire edition of Tax and Legal Mobility Insights, or to hear the recorded eLearning and other eLearnings of interest, visit our events page on Cartus.com

Picture of Bruce  Perlman

Posted By

Bruce Perlman

About Bruce

Bruce joined Cartus in 1991 and was named senior vice president and general counsel in 2001. He has lectured extensively and written many articles on tax and legal topics related to global relocation issues.

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