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B-204995 1 (1982-07-20)

handle is hein.gao/gaobadkmv0001 and id is 1 raw text is: e D3ECISION 0- ~~V *,(.;,*I o THU COMfwpS -tOLLfil VI.NRAL. OF rHi mUNITIet S1TATES3 WABHINT ON 0.0, 0.020540 IC- FILE; B-204995 MATTHE 0R OF: SIdney DATE; July 20, 1982 C. Smith -- Real estate expenses DIGEST; A transferred employee who purchased a residence at his new offficial station claims reimbursement for real estate uroker's fee, loan transfer fee, and cost of obtaining certificate of taxes due. None of the expenses claimed are reimbursable since: (1) the broker's fee was incurred incident to purchase and covers services customarily performed by real estate brokerst (2) the loani transfer fee is a finance charge within the meaning of Regulation Z, 12 C.F.R. §226.4(a) (1981)1 and (3) the fee for certification of taxes is not customarily paid by the buyer in the relevant locality. Elizabeth A. Allen, tn authorized certifying officer of the Internal Revenue Service (IRS), Southwest Region, Dallas, Texas, roquests a decJsion on the reclaim voucher of Mr. Sidney C. Smith for certain real estate expenses incurred in connection with the purchase of a residence in Denver, Colorado, incidernt to a permanent changq. of station. Specifically, Mr. Smith requests reimbursement in the amount of $540 ropreaunting fees paid to a real estate broker ($500), a loan transfer fee ($35), arid the cost of obtaining a certificate of taxes due ($5). Based on the provisions of paragraph 2-6.2 of the Fedoral Travel Regulations, FPZR 101-7 (May 1973)(FTR), we hold that the reclaimed expense3 may riot be i:eimbursed. The IRS denied Mr. Smith's claim for broker's fees allegedly representing costs of contract preparation and miscellaneous expense& because Mr. Smith failed to provide an itemized account of the broker's services. Reimbursement for the loan transfer feo was denied on the basis that such fee is similar to a loan origination fee which is classified as a finance charge under Regulation Z, 12 C.F.R. §226.4(a)(1981). The agency denied Mr. Smith's claim for the cost of obtaining a certificate of taxes due, based on information received from. the Denver, Colorado, area office of the Department of ibDusing arid Urban Development (HUD), indicating that in Colorndo it is customary for the seller to pay for a tax certificate. 1% '. *1 ol'4R Nw, 4. 40 M

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