form 1099s

[imjulier]

Does the IRS match forms 1099s? I know taxpayer is supposed to report sale of personal residence on Sch D and then can show sec. 121 exclusion on same form but is this even necessary if taxpayer qualifies for the exclusion. The only way I think IRS can know this is if they can match 1099S.

Thanks,

Julie

[imjulier]

I really mean form 1099-S

[TAXBILLY]

>>Is this even necessary if taxpayer qualifies for the exclusion?<<

The seller is usually asked at the closing if they qualify for the exclusion so that a 1099-S is not issued.

If they didn't sign anything and a 1099-S was issued, I would suggest putting it on Schedule D to avoid correspondence with the IRS down the road.

taxbilly

[kcjenkins]

Any time a 1099-S is issued, you need to report the sale, even though you are taking the §121 exclusion.