Do any of you that do sub2 file form 56 (Notice Concerning Fiduciary Relationship) with the IRS? If yes or no, please elaborate for me, why or why not. Thanks.
How does a Fiduciary Relationship exist if you are taking the deed Subject To the existing mortgage? Perhaps you could explain the details of the deal that created a Fiduciary Relationship.
Just because you took the house sub2 has no bearing on whether you file a form 56.
The IRS Rev. Rul. 63-16 states that when the trustee is acting as a fiduciary duty for another person (IE: the beneficary) then you have to file a Form 56.
Mark Warda even mentions this also
Hope this helps
I have to say I feel stupid… Of all of the Sub 2 transations I have done never have I used a trust… Just a regualr transfer using a deed…
Did you go to one of those FEAR seminars?