Simplifying the anxieties and complexities around selling your home when relocating.
Our Tax-Compliant Approach: The employee home sale management program assumes all the transaction details. This includes coordination, compliance, tracking, and reporting functions.
Save Thousand in Gross-Up Taxes: The Guaranteed Buyout Option/Amended Value (GBO/AV) and Buyer Value Option (BVO) programs are US Tax-protected home sale programs that allow a company to capture the selling expenses as a non-tax event.
A single point of accountability: We deliver streamlined end-to-end relocation program benefits, and technology tools for expense management and reporting. Beginning with an understanding of our clientele, and the relocation program goals, as well as a review of their policies and procedures we are able to gain a competitive edge. With our focus on market-based research and our vast knowledge of compliance relocation programs, we can offer simple solutions that keep you laser-focused on the end goal.
This program mitigates the tax liability of the direct reimbursement program. It allows the transferee to list and market the home until an offer is received. InterLink, the RMC, purchases the property from the employee based on the sales contract amount, the same terms, and conditions, and in turn, sells it to the ultimate buyer.
For the BVO program to be IRS compliant, there are two separate sales that take place for the property. This removes the tax liability for the costs covered by the real estate broker’s commission and the seller’s closing costs of the property. It also allows the home to be placed back into inventory to be re-listed, by InterLink, at a later date should the original sale fall through.
With a GBO / AV program, the transferee/homeowner normally has a company policy-defined timeframe in which to find a buyer for the property. Timeframes for marketing requirements can range from 60 to 120 days. If the transferee is unsuccessful in selling the home, they have the option of taking the Guaranteed Buy-out offer from the RMC. This GBO value is based on the average of two relocations appraised values.
If there is no offer and the transferee accepts the GBO offer, then the home is acquired by the RMC. This means the property is taken into inventory on behalf of the Client, and the company incurs the subsequent carrying costs and any loss or gain on the sale.
During the required marketing period, if an offer is received on the property, then the RMC will “amend” the GBO value to reflect the outside offer value with the same terms and conditions and in turn, sells it to the ultimate buyer. The Amended Value program also removes the added income tax burden. Our teams identify and manage areas of risk and conduct home sale programs with confidence and the know-how to get the home sold quickly
Upon closing, the transferee is reimbursed for the real estate commission and customary non-recurring seller’s costs associated with that sale. This program allows the company to stay out of the transaction and, as such, has no risk of owning the property if a sale or closing does not occur.
There is a significant tax impact with this program. Reimbursed home sale closing costs are viewed as taxable income by the IRS. As a result, there is an added tax burden that can become significant for the employee.
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