Christian Posted March 3, 2020 Report Posted March 3, 2020 A client sold her home last year. How is this reported on Schedule D or exactly how? Lawyers here rarely send clients the federal reporting form and I have not had to fill in this info in years. Quote
grandmabee Posted March 3, 2020 Report Posted March 3, 2020 go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s 5 Quote
Pacun Posted March 3, 2020 Report Posted March 3, 2020 I normally start with schedule D and then it is transferred to form 8949 and then to Schedule D. Open Schedule D and then click on sale of residency or something like that. Then enter the date acquired, sold, answer the question if she/he lived there and enter the cost and sale amount. It is very simple and it will take you only a few minutes if profit was not more than $250K for one tax payer or $500K for two taxpayers. Since it was not rented, I believe all profit will be tax free. Quote
Gail in Virginia Posted March 3, 2020 Report Posted March 3, 2020 2 hours ago, grandmabee said: go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s Many times, they don't realize they have been given a 1099S. It is just in with the huge packet of papers they received at closing and which they never looked at except to sign where the attorney pointed. 2 Quote
mwrightea Posted March 3, 2020 Report Posted March 3, 2020 I also always report. Better safe than sorry later. 4 Quote
Christian Posted March 3, 2020 Author Report Posted March 3, 2020 Thanks to all. Likely I have simply lucked out as I have never been informed any of those who sold homes ever received any followup from the Service but then again I do not process many returns with home sales either. 2 Quote
Gail in Virginia Posted March 3, 2020 Report Posted March 3, 2020 And maybe we are just paranoid. Hard to tell anymore. 4 Quote
Sara EA Posted March 4, 2020 Report Posted March 4, 2020 When you sell a home, as we recently did, the attorney gives you a form to sign and check off whether you've lived there for 2 of the past 5 years. If so, and the sales price is not above the Sect 121 limits of $250k or $500k, no 1099S is issued. Therefore no reporting is required. Why make work for yourself? 1 Quote
Catherine Posted March 4, 2020 Report Posted March 4, 2020 50 minutes ago, Sara EA said: Why make work for yourself? Because it takes a minute to fill out the reporting form, and far longer to answer the CP2000 letter a year and a half from now. 2 Quote
Abby Normal Posted March 4, 2020 Report Posted March 4, 2020 15 hours ago, Gail in Virginia said: And maybe we are just paranoid. Hard to tell anymore. Hard to blame us. Seminars tend to scare the crap of out us lately. 2 Quote
Abby Normal Posted March 4, 2020 Report Posted March 4, 2020 21 hours ago, grandmabee said: go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s The sale of principal residence is on the 8949. Sch D is little more than a summary these days. 1 Quote
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.