Level 3

sale of pesonal residence

Forum|Forum|5 years ago
February 4, 2021
2 replies
28 views

a taxpayer sold his house over $250,000 and total gain is under Sec 121 exclusion amount. He didnot receive a form 1099-S. A form 1099-S is required when sales proceeds over $250,000. this transaction is required to be reported on the tax return if form 1099-S was issued. in his case the form 1099-s is required but was not issued. is this transaction still be required on the tax return?

This topic has been closed for replies.

abctax55

Level 15

A form 1099-S is required when sales proceeds over $250,000.

I don't think this is a valid statement.

this transaction is required to be reported on the tax return if form 1099-S was issued.

I KNOW this isn't a valid statement

*******

I report all sales of real estate on F.8949 > Sch D, even the sale of a personal residence (despite the fact the IRS instruction say it's not necessary..) to avoid future love letters from the IRS. YMMV.

HumanKind... Be Both

BobKamman

Level 15

I was surprised that this is what IRS says, because I often see transactions over $250K/$500K that are not reported on a 1099-S., Taxpayers are not going to get an IRS notice if there is no 1099-S, so I don't line my pockets with extra cash for reporting qualified primary-residence sales when there is no 1099-S.

"The following is a list of transactions that are not reportable; however, you may choose to report them. If you do, you are subject to the rules in these instructions.

Sale or exchange of a residence (including stock in a cooperative housing corporation) for $250,000 or less if you received an acceptable written assurance (certification) from the seller that such residence is the principal residence (within the meaning of section 121) of the seller and the full amount of the gain on such sale is excludable from gross income under section 121. If the certification includes an assurance that the seller is married, the preceding sentence shall be applied by substituting "$500,000" for "$250,000." If there are joint sellers, you must obtain a certification from each seller (whether married or not) or file Form 1099-S for any seller who does not make the certification. Also, the seller must include in the certification that there has been no period of nonqualified use (as that term is defined in section 121(b)(5)(C)) after December 31, 2008, and as required by section 6045(e)(5)(A)(iii), that the full amount of the gain from the sale is excludable under section 121. The certification must be signed by each seller under penalties of perjury."

https://www.irs.gov/instructions/i1099s

abctax55

Level 15

if there is no 1099-S,

And your clients "always" bring you every single form ? Mine don't.

AND you are "assuming" I pad my bill for taking this proactive move; we both know what that can spell.

HumanKind... Be Both

abctax55

Level 15

I apologize to everyone for my answer (s).

I thought this thread was about the sale of a peRsonal residence.

HumanKind... Be Both

IRonMaN

Level 15

Thanks - I tried to buy a vowel but the "I" that I bought didn't seem to help solve the puzzle. I never would have guessed that we needed a "R"

Slava Ukraini!

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