Client sold residence they owned and lived in for 7 yrs straight (100% for residence, none of it ever was rental). Clients marital status single at purchase and at sale. Paid $125K sold for $205K. Is the title co. suppose to notify the IRS on gross proceeds?
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Just to be contrary, I say yes. I report the sale so if the 1099S was issued, there won't be a letter to come later.You have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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Looks like NO based on the
"Certification for NO info reporting on the sale or exchange of a principal residence"......seems to meet all qualifiers. Thanks again SolomonComment
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I have never reported
The sale of a residence if it met the rules for the exclusion and there was no business use. Even if a 1099 was issued. And I have never received a letter from the IRS.Comment
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IRS instructions for Schedule D indicate to not report unless a 1099S is received AND the taxpayer incurred a loss. Or if there's a taxable gain.Comment
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No harm in reporting it if it makes you feel more secure about the return filing.Comment
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The only time I've seen a 1099S is when there is a question if it was for full residential use that may not qualify for 121 exclusion.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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I have always encouraged my clients to report the sale of their primary residence even if the gain will be excluded (of course I also explain to them that the tax law seems to imply that they are not required to report the sale if there is no gain)...just to have a peace of mind.Comment
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