Both buyers and sellers may need a bill of sale for accounting, tax reporting, or insurance purposes. While the seller typically provides the document, both parties gain some protection from it: Buyers can retain a copy of the bill of sale as proof of purchase, payment, and ownership, and sellers can document the terms of the sale and the condition of the item. However, this type of documentation is generally not used when selling low-cost items, providing services, or for real estate purchases. A bill of sale can document the sale of personal property, tools, animals such as livestock or pets, and household furnishings or appliances.
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