Relocation companies do not profit from buying and selling employees' homes. They provide a market-based offer that is an average of independent appraisals. Payments to vendors on behalf of employees are non-taxable if for household goods moves, final destination move costs, or qualified home sale programs. While other relocation expenses use the 50-mile test for tax protection, home sales do not and are sometimes taxable. Short-term assignments under 1 year are treated as business trips for tax purposes, but assignments required beyond 365 days include taxable travel reimbursements after that point. Relocation company service fees of 3-5% of relocation spending can greatly reduce costs for organizations while ensuring tax compliance and program structure
For employers and transferring families, making sure the kids feel comfortable in their new school is critical. Here are 6 tips to help recently relocated families with kids of all ages get off on the right foot for the upcoming school year.
For employers and transferring families, making sure the kids feel comfortable in their new school is critical. Here are 6 tips to help recently relocated families with kids of all ages get off on the right foot for the upcoming school year.
W. Edwards Deming is credited as the father of quality in business. His 14 key principles apply to every company--not just WHR Group Employee Relocation--striving for better, more consistent quality at work.
Compared to domestic relocation, relocating globally is a whole different ball game. We dispel the top 5 myths associated with relocating internationally.
New to the home buying process? Haven't gone through it in a while? Here's a great guide to get you started on understanding the process, the costs, and the benefits of having a team of professionals helping YOU!
W. Edwards Deming is credited as the father of quality in business. His 14 key principles apply to every company--not just WHR Group Employee Relocation--striving for better, more consistent quality at work.
Compared to domestic relocation, relocating globally is a whole different ball game. We dispel the top 5 myths associated with relocating internationally.
New to the home buying process? Haven't gone through it in a while? Here's a great guide to get you started on understanding the process, the costs, and the benefits of having a team of professionals helping YOU!
My Home Buyers Guide is a valuable tool prepared to help you understand the complex process of buying a home in today’s market. My commitment is to put my extensive professional, technological and networking resources to work, in your best interest, to help you purchase the right home.
3. Relocation companies provide a
market-based offer for an employee’s home
based on the appraisal criteria set forth by
the Worldwide ERC.
Relocation home sale expertise
Priced to sell
IRS compliant
4. Typically, two appraisals are ordered from
independent appraisers, and the results are
averaged for an offer on the employee’s home.
$208,000
$203,000
/2
$205,500 buyout
+
=
5. Relocation companies do not make a profit
on buying and selling the home but rather are
paid a fee for services regardless of the
property’s eventual sales price.
6. IF A RELOCATION COMPANY
MAKES PAYMENTS TO VENDORS,
IT’S NOT A TAXABLE
REIMBURSEMENT TO THE
EMPLOYEE
2.
7. All payments made on behalf of an employee
to a vendor can be considered taxable income
to the employee.
8. Exceptions to this are...
Household goods move costs
Final move costs to the
destination
Any costs associated with a
qualified Home Sale program
9. HOME SALES ARE TAXABLE IF
THEY DON’T MEET THE IRS
“50 MILE” TEST
3.
10. Home sales fall under a different
IRS tax ruling than other relocation
expenses
(specifically Revenue Ruling 72-339)
11. While these other relocation
expenses use the 50-mile test to
determine tax protection, the test
does not apply to home sale
programs
[Organizations can handle home sales like
any other business expense]
16. Provider fees typically account for only
3 - 5%
of relocation
spend
(While a small amount in comparison to total cost, these fees can
reap great rewards in cost savings, program structure, and ensuring
tax compliance.)
17. WHR Group helps transferring employees by
making moves simple, smooth, and enjoyable.
www.whrg.com/news for more!