New Rental Property seems to be asking for an outdated form (HUD-1) for settlement agreement/closing document

Forum|Forum|4 years ago
April 11, 2022
1 reply
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I see that several of us are confused because we were not issued HUD-1, which is requested in the renter's section of TurboTax. This is for the section for rental income to new rental property.

Because HUD-1 has not been used since 2015 and TurboTax is following the structure of HUD-1, I notice several people on this forum since 2017 have been frustrated because our closing disclosure follows a different structure and uses different vocabulary than the requested fields. See images at the end.

It seems like the TurboTax software is outdated.

I notice, that where TurboTax requests information from box L on HUD-1, there are other clients on here where this corresponds to our section C from our closing disclosure.

I will include a screenshot of the TurboTax form as well as my own section C. I will do my best to guess which part from section C corresponds to the box in TurboTax.

Box 1 Abstract and recording fees includes includes C2

Box 2 Legal Fees, Title Search, doc prep includes C1

Box 3 Land Survey

Box 4 Title Insurance includes C5

Box 5 Transfer or stamp taxes includes C10

Box 6 Expenses/paid for seller

This means I am not sure where to list C3, C4, C6, C7, C8, and C9

Where should these go?

My document:

As it appears in TurboTax:

Carl11_2

Employee

The major issue is that ever since the requirement for a HUD-1 settlement statement was eliminated, there are those closing companies that just "make up" their own closing document, literally "out of thin air". So it's perfectly possible that your closing costs aren't broken out at all. Now don't know if it will help, but here's the basics.

- Those costs associated with acquisition of the property are added to the cost basis of the property and depreciated over time. Examples would include (but not limited to) title transfer fees paid at the courthouse to change the name on the deed from the buyer to the seller.

- Those costs associated with acquisition of the loan are amortized and deducted (not depreciated) over the life of the loan. Expamples would include (but not limited to), loan application fees, points/pre-paid interest, and survey fees if (and only if) a survey was a condition of loan approval,

RichardMMMMAuthor

I don't know if you can see the photo I attached, but the costs are broken down in section C. Which turbotax boxes do those belong?

I understand that there is not a "standard" form, however I noticed other people on this forum have a section C just like mine so this might be the most common form for California.

Carl11_2

Employee

@RichardMMMM there is nothing attached to your post or embedded in it. If you can't see it after posting, then no one else can see it either.

If you attempt it again, make absolutely certain that any personally identifiable information is removed from your attachments. The trolls will waste no time in using your personal information against you for their personal gain.