Avoid Tax Problems

Use these forms for personal and business transactions, and you will be fully protected against falling into the trap of conducting a sale transaction by means of an old fashioned handshake. By formalizing your agreements in writing, you provide proof of any tax deductions or write-offs you take on your tax returns. Bill of sale forms will help you to avoid any costly oversights and getting into tax difficulties. Each form is written in straightforward language so that you will understand it with ease. This ensures you make no mistakes because you did not understand the meaning of a provision. If say you are selling an item of value for example, you should endeavor to fully understand the terms and provisions of the document.

You should have a buyer sign a "Security Agreement" along with the bill of sale. It isn't wise to use a simple bill of sale form for "realty", "corporation stock" or "personal shares". But for personal items like a painting a standard form is all that is required. The reason for using a bill of sale is to make a written record of the sale establishing the date, time and place it was entered into. The terms should be clearly marked stating the intention of both parties. To ensure it's binding, there must be a clear offer and acceptance. The same goes for the street address of both parties. You should make sure it includes the exact spelling, the city and the zip code. It's also a good to include all telephone numbers as well as the persons email address.

Product Identification Trademarks

1. The names of both parties in complete form. For example: If one party is John Smith, don't just write "John Smith" write or type the name in full as "John William Smith" etc.

2. A clear and precise statement the item(s) in the sale. It must include the manufacture or make, any model numbers, what type of color the item is, and any serial and/or government registration numbers. This is especially so when it comes to product identification trademarks or corporation logos, etc.

3. If there is no exchange of goods and the sale involves payment for said item being offered for sale then you must clearly state what currency the sale item is being paid for, and precisely how the payment will be made by cash, credit card, direct debit, etc.

Complying With State Laws

Most documents must be in writing if they are to be legally enforceable; other agreements should follow a specific legal format if they are to be effective. Because these online bill of sale forms satisfy these requirements, you can be confident your sale agreement will provide you with sufficient legal protection. Nevertheless, it is a good idea to have a local attorney review the form before you date and sign it. You also need to make certain the form" complies with state laws. To ensure it does comply with federal and local laws, it is important to have it witnessed or notarized. If you are unsure as to the proper legal format insert the following contract clause in your document.

ACKNOWLEDGMENT

State of [STATE]

County of [COUNTY]

On [DATE] before me, [NAME OF NOTARY], notary, personally appeared [NAME OF PERSON(S) INVOLVED], personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity, and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

Witness my hand and official seal.
Signature -- Notary (Official Seal)

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