Anonymous
07/19/2014 11:13
Subject: Relocation Packages
Anonymous wrote:Anonymous wrote:Don't forget that all the monies paid are going to show up as salary or bonus and if it is not part of the deal. You will take the tax hit.
OP here - dh company says they will gross up any taxable benefit. We got some further details...they won't pay for a loss on sale but since we bought our current home in 2002 it shouldn't be an issue. All sales and buy-in closing costs, up to 2 points on a new loan, and all move costs. And one month base salary for incidentals. Seems like a great package.
Make sure you double check that gross up in Turbo tax. We got relocated for a three year stint and had to rent out our old house. Between losing the mortgage deduction and the taxable benefit kicking us into AMT territory, the gross up barely covered half our actual tax increase.
Anonymous
07/18/2014 19:01
Subject: Relocation Packages
Anonymous wrote:Forgot to mention here's how else I gamed this:
2 points on a loan was technically "closing costs". I negotiated with the bank to give me 2 points off the mortgage at a slightly worse then market rate (ie no points = 4%, 2 points = 3.75%, I got 3.8%) - in return for 0 closing costs.
I also negotiated with the real estate person because the company usually wants to charge the agent a fee for "brokering" the introduction - thus instead of (say 3%) as a buyers agent the buyers agent gets 1% and the company pays closing costs. I told my broker this so if he wanted to work with me he'd have to accept that rate - instead he offered me 1% of his commission and I negotiated with the company to pay closing costs anyway since I found the realtor. Bottom line is I got $12k out of the realtor and kept the closing costs too,
Better hope your company doesn't find out about any of it - you essentially stole from your company. I know someone who did a similar side negotiation with his broker- he was relo as well. He told a few people in the company his little secret but made the mistake of pissing them off later on down the line....so all 5 of the people he told his little secret went to corporate compliance and he was fired 6 weeks later. Compliance investigated and found out it was true. He was a VP FWIW.
Anonymous
07/18/2014 18:27
Subject: Relocation Packages
Forgot to mention here's how else I gamed this:
2 points on a loan was technically "closing costs". I negotiated with the bank to give me 2 points off the mortgage at a slightly worse then market rate (ie no points = 4%, 2 points = 3.75%, I got 3.8%) - in return for 0 closing costs.
I also negotiated with the real estate person because the company usually wants to charge the agent a fee for "brokering" the introduction - thus instead of (say 3%) as a buyers agent the buyers agent gets 1% and the company pays closing costs. I told my broker this so if he wanted to work with me he'd have to accept that rate - instead he offered me 1% of his commission and I negotiated with the company to pay closing costs anyway since I found the realtor. Bottom line is I got $12k out of the realtor and kept the closing costs too,
2 points on a loan was technically "closing costs". I negotiated with the bank to give me 2 points off the mortgage at a slightly worse then market rate (ie no points = 4%, 2 points = 3.75%, I got 3.8%) - in return for 0 closing costs.
I also negotiated with the real estate person because the company usually wants to charge the agent a fee for "brokering" the introduction - thus instead of (say 3%) as a buyers agent the buyers agent gets 1% and the company pays closing costs. I told my broker this so if he wanted to work with me he'd have to accept that rate - instead he offered me 1% of his commission and I negotiated with the company to pay closing costs anyway since I found the realtor. Bottom line is I got $12k out of the realtor and kept the closing costs too,