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Contact Information

Donna Hermsen
Bunbury & Associates Realtors
6650 University Ave
Middleton, WI 53562
Phone: 608 770-1140
Email: DonnaHerms@aol.com

Testimonials

Dear Mr Bunbury, As a former owner of a company we know valuable employees are to your success. This is why we are writing to express our complete satisfaction with Donna Hermsen. A little background on the history of our home at 7809 Cobblestone Circle, Middleton. The house had been on the market for one full year, we had vacated athe house on November 1 and moved to S.C. When it was time to to list again, with a 3rd agent, in January, I spent considerable time on the internet trying to find a new agent. I was impressed with Donna's bio and called her to take a look at the house. Our two sons were in the process of installing some updated light fixtures and were at the house when Donna & Dan looked at it. We also had another agent/team from another agency look at the house while our sons were there. After talking to Donna and the other agent, and asking our sons for their opinion of which agent to list with, it was unanimous that Donna was the choice. I was very anxious listing with anyone, and not meeting them and being so far away (S.C.) from the property. Donna was fantastic, she kept us informed of every showing, she followed up with each possible interested party and her negotiations with the selling agent were very professional. The closing couldn't have gone smoother. All paperwork was done via email, and she was prompt and excellent in any answers to questions we had. I will recommend her to anyone I know back in Middleton/Madison area that is thinking of selling or buying a home. Sincerely, Gloria Kuehn Testimonial Gloria Kuehn
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Required Reporting to the I.R.S.

Sellers of real property will have certain information regarding the sale reported to the Internal Revenue Service.

This required reporting is a consequence of the Tax Reform Act of 1986; it is intended to encourage taxpayer compliance and aid in audit and enforcement efforts by the I.R.S.

To help you better understand this subject, the Land Title Association has answered some of the questions most commonly asked about Required Reporting to the I.R.S.

Who is required to report to the I.R.S.?

Sellers of real property, under guidelines established by the I.R.S., are required to have their gross proceeds from the sale reported on a Form 1099S. When a settlement agent is used, the I.R.S. makes this agent responsible for the delivery of the information on the Form 1099S.

The settlement agent generally will be the escrow agent or title company; however, it may be an attorney, real estate broker or other person providing settlement services.

What is an I.R.S. Form 1099S, and what will be reported?

The Form 1099S is the reporting form adopted by the I.R.S. for submitting the information required by law.

The information will be transferred onto magnetic media by the settlement agent who will store the information and make the required report to the I.R.S. The settlement agent is also responsible for keeping a master copy of all transactions reported.

In general, information required by the I.R.S. falls into the following categories:

  1. The name, address and taxpayer ID number (social security or tax identification number) of the seller(s)
  2. A general description of the property (in most cases an address)
  3. The closing date of the transaction
  4. The gross proceeds of the transaction (even though gross proceeds do not correspond to taxable income)
  5. Any property involved as part of the transaction other than cash or cash equivalent
  6. The name, address and taxpayer identification number of the settlement agent.
  7. Real estate tax paid in advance that is allocable to the buyer.

On what type of transactions is a Form 1099S required?

Currently, typical homeowner transactions covered include sales and exchanges of 1-4 family residential properties such as houses, townhouses, and condominiums. Also reportable are sales or exchanges of improved or unimproved land, commercial or industrial buildings, condominiums, stock in a cooperative housing corporation and mobile homes (manufactured homes) affixed to real property.

Specifically excluded from reporting are foreclosures and abandonment of real property and financing or refinancing of properties.

What happens if the seller(s) refuses to provide the taxpayer identification number for the Form 1099S?

The settlement agent is required to request the transferor’s taxpayer identification number(s) (TIN(s)) before the time of closing. You may request a TIN on Form W-9 or use an alternative written request. The IRS has included sample wording of an alternative written request in the instructions for preparation of Form 1099S.

Should the seller fail to provide the identification number and certify its correctness, the settlement agent may choose to:

  1. Delay the closing of the transactions until the information is furnished, or
  2. Complete the transaction and report to the I.R.S. that an attempt was made to obtain the information from the seller.

How is the sale reported when there is more than one seller involved or when multiple sellers do not own equal interests in the property?

Multiple sellers may allocate the gross proceeds among themselves for purposes of reporting. If there is no allocation, an incomplete allocation or conflicting allocations, then the entire gross proceeds will be reported for each seller.

Where can I go for further information on taxation of real property?

The I.R.S. provides free publications that explain the tax aspects of real estate transactions. You may wish to order:

  • Publication #523 “Tax Information on Selling Your Home”
  • Publication #530 “Tax Information for Home Owners”
  • Publication #544 “Sales and Other Dispositions of Assets”
  • Publication #551 “Basis of Assets”

To place your order, phone toll-free (800) 829-3676.

Article by CLTA

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