Certified Relocation Professional (CRP) Practice Exam

What factor can lead to favorable tax treatment for amended value sales transactions?

1. Contingent buyout offers based on mortgage approvals within 30 days

2. The employer passing back profits realized after sale

3. The transferee signing offers from outside buyers within 8 hours

4. A clause in the listing agreement relieving liability for sales commission

The correct answer is: A clause in the listing agreement relieving liability for sales commission

The correct answer regarding favorable tax treatment for amended value sales transactions lies in the clause in the listing agreement that relieves liability for sales commission. This clause can be beneficial because it can reduce the overall transactional costs associated with a sale. Since commissions reduce the net proceeds from a sale, eliminating this liability potentially enhances the financial position of the seller. When sales commissions are alleviated, it can improve the net selling price, thereby changing the overall profit picture for tax purposes. Specifically, if profits are realized without the burden of sales commission deductions, it may lead to favorable tax outcomes during the sale process. In contrast, contingent buyout offers based on mortgage approvals, passing back profits realized after the sale by the employer, or signing offers from outside buyers within a very short time frame do not directly influence tax treatment in the same way. They may relate to the sale process itself or corporate financial strategies, but they do not offer the same level of direct impact on the basis for tax benefits or liabilities, as is the case with commission structures.