Why do I need to fill out a W-9 form for the sale of my home?
I am selling a home. I have been in this home since December 2013. I stand to make a profit of about $30,000. Why do I have to fill out a W-9 form for this? What does it mean when it says I have to pay taxes on my profit and, if so, how much?
The W-9 is to obtain your SSN. This is conveyed to the IRS so they will be able to determine if you will owe taxes on the sale of your house. Since you have lived in the house 2 of the past 5 years and you do not have gains that excess your exemption ($250,000 single), you will not be required to pay taxes. You will need to report the sale of your house.
Kimberly J. Howard, CFP