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Posted by Bill on January 19, 2007, 8:25 pm
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kastnna@auburnalum.org (kastnna) posted:
> To exclude the CG on a Joint filing residence
> (up to $500K) do I need a specific form or do I
> simply not count the sale on my 1040?
Yes.
If you sell your main residence at a price less than
$500,000 - if MFJ ($250,000 Single) - _above_ your cost
basis, then you simply do not report anything. The gain is
ignored, and no documentation is required.
However, if your total sales price could theoretically
expose you to the tax (substantially above $500K MFJ / $250K
Single), then you would be wise to preserve your cost and
other records used to calculate the gain for at least three
years.
Bill
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Posted by Shyster1040 on January 19, 2007, 8:25 pm
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Provided that you qualify to exclude all of the gain from
the sale, you simply do not report the sale; however, if you
have any depreciation or amortization recapture, or if you
must or choose to report some of the gain, then those
amounts must be reported on your return. For more info, see
IRS Pub. 523, available online at:
http://www.irs.gov/publications/p523
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
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Posted by JD on January 25, 2007, 2:24 am
Please log in for more thread options kastnna wrote:
> To exclude the CG on a Joint filing residence (up to $500K)
> do I need a specific form or do I simply not count the sale
> on my 1040?
It depends...
If there is no 1099S issued then it does not need to be
reported. If a 1099S IS SENT then you need to report the
amount on Schedule D.
In general a 1099 will not be sent if the sales price is
less than $500K or $250K.
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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Posted by Phil Marti on January 26, 2007, 4:42 am
Please log in for more thread options >> To exclude the CG on a Joint filing residence (up to $500K)
>> do I need a specific form or do I simply not count the sale
>> on my 1040?
> It depends...
>
> If there is no 1099S issued then it does not need to be
> reported. If a 1099S IS SENT then you need to report the
> amount on Schedule D.3
This is contrary to IRS instructions, which say no reporting
if the entire gain is excludable, even if you get a 1099-S.
See the "what goes where" section of the 1040 instructions.
This has been in place for almost 10 years and doesn't seem
to be creating a problem during underreporter analysis.
--
Phil Marti
Clarksburg, MD
<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>
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