Posted by The Baze on December 20, 1999 at 22:24:21:
This is correct. At my firm, we still report the whole thing on Schedule D, then just take the Section 121 exclusion. Why? Schedule D’s are an extra $30.
Tom Bazley
tax question - Posted by danny
Posted by danny on December 20, 1999 at 16:12:10:
What form (if any) must a person file on tax day if they have sold their own home that year? We sold our own home and made a handsome profit this year. I was told by a friend that has SOME experience with taxes that there is no form to complete. This cannot be correct can it? How will uncle Sam know when my wife and I have reached our $500,00 limit for tax deferment if no form must be completed???
HELP!
Re: tax question - Posted by Dave T
Posted by Dave T on December 20, 1999 at 19:22:05:
If the profit (or a portion thereof) on the sale of your principal residence is NOT eligible for the capital gains exclusion, you get a 1099 from the title company or settlement attorney that conducted the closing. In this case, report the sale of your principal residence on Schedule D.
If the profit from the sale of your principal residence is completely eligible for exclusion from capital gains taxation, you do NOT get a 1099. If you elect to take the capital gains exclusion and your entire profit is eligible for the exclusion, you do NOT report the sale on your 1040.
Note that taking the capital gains exclusion is optional – not mandatory. If you want to, you can choose to report the gain as taxable income.
Re: tax question - Posted by The Baze
Posted by The Baze on December 20, 1999 at 18:57:51:
Danny,
At closing you should have rec’d a 1099-S. This form reports the proceeds of the sale. You’ll put this on your Schedule D along with your basis in the property. That’s where you’ll determine the amount of the gain you have, and whether or not it’s excludable under section 121. The closing company will send the 1099-S to the IRS as well. Hope this helps.
Tom Bazley