Should I get title insurance even though seller promises a warranty deed?:
I'm interested in acquiring a lot through an online auction. The seller promises the winning bidder a warranty deed, free and clear. The lot is not currently recorded in his name and he explained it being so due to the fact that he just bought the lot. According to him the deed was sent for recording to the county clerk around a week ago, but it's not yet recorded. My questions: Do you think it's advisable to get title insurance even though he wants to grant a warranty deed? Is the warranty deed enough assurance that the title is clear and free from any encumbrances and title defects?
Thank you!
Amy’s answer: You should get title insurance. The warranty deed by the seller is not sufficient assurance that the title is clear and free from defects. Like the prior attorney mentioned, if there are defects in the chain of title, the seller's warranties are only as good as his ability to pay you. Title insurance is a policy that follows you until you sell the property; it does not expire and works retroactively to cover defects PRIOR to your purchase.
Do I need a business tax receipt for all counties work is performed?: I am a mobile locksmith. I run it out of my home and I have a tax receipt in that city as well as Broward county. Soon I will occasionally be helping customers in palm beach county and Dade county. Do I need a tax receipt for both those counties? Seems like a simple yes or no question but I am just not sure of the answer. Example: in a five day work week I may help about 3 -4 customers In palm beach county.
Amy’s answer: To the best of my knowledge, locksmiths in Florida are not required to be certified by the Department of Business & Professional Regulation. As a general rule, if you are DBPR certified, and you are a "mobile" vendor, you only need one business tax receipt for your home county and one for your home city. I would recommend you call up the business tax receipt departments in Palm Beach County and Dade County. They should come across this scenario often, and can readily answer your question.
What should I do with 1099-C form I received?: We filed for bankruptcy chapter 7 in 2009 and were discharged in 2010 . The rental property was included in the bankruptcy . We worked out the Deed in Lieu with the bank . We received the form 1099 - C from the bank . Should we include it in our tax return ? I am afraid that if yes , we will be liable for paying taxes on that " extra " income . I tried to research it on the Internet and got the impression that if it was included in the bankruptcy we are not liable for paying taxes .
Amy’s answer: Generally, no, but the specifics will have to be discussed with your accountant. If you filed for bankruptcy, and subsequently received a 1099-C, you should not be liable for the taxes on the cancellation of debt because your obligation was discharged. The bank has a duty to provide the 1099-C for any written-off debt. You should speak to your accountant about declaring the 1099-C, and informing the IRS of your previous bankruptcy. There are specific forms your accountant has to file regarding this debt and bankruptcy.