Janitor Bob Posted April 5, 2013 Report Share Posted April 5, 2013 If taxpayer sells main residence and meets all requirements to exclude all of the gain...and does NOT receive a 1099-S, do they need to report the sale on their taxes at all? Quote Link to comment Share on other sites More sharing options...
rfassett Posted April 5, 2013 Report Share Posted April 5, 2013 Not for federal. Some states may require it. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 5, 2013 Report Share Posted April 5, 2013 How do you know the 1099--s wasn't lost in the mail? No harm in filing the info Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted April 5, 2013 Author Report Share Posted April 5, 2013 GOOD POINT Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 6, 2013 Report Share Posted April 6, 2013 I ALWAYS report them, JB, because it is by filing and claiming the 212 exception that you protect the client. I don't think that exception is automatic, you should always do the Sch D and claim it. Quote Link to comment Share on other sites More sharing options...
jainen Posted April 6, 2013 Report Share Posted April 6, 2013 >>meets all requirements to exclude all of the gain<< One can't actually know this without doing the calculations. Even if it seems obvious, I write it out. (Tax Tools is a good start but I usually put more details in the margins.). It might not be so obvious later on, or the taxpayer might even be giving incorrect information. I think the IRS instructions are stupid but I follow them--don't report on Schedule D.unless required. Quote Link to comment Share on other sites More sharing options...
Hahn1040 Posted April 6, 2013 Report Share Posted April 6, 2013 The fact that the 1099-S is issued and the client knowing (or remembering) that they received it can be two different things! Example one: 2010 client sold house she had owned for well over the required two years. She had always lived in it. When she didn't have a 1099-S, I wasn't concerned because there was no reason that she should have received one. Jan 2011, she sends me the letter she had received from the IRS. The tax on a $450,000 house adds a LOT to one's tax liability. OF course, it was just a matter of sending the IRS the Schedule D.... but it takes time and effort.... to say nothing of the client's shock of getting the letter! Example two: 2012 client does short sale. When asked for the 1099 C and 1099-S she "did not get any forms". She insisted that she had asked the people who did the paperwork and she didn't need to file anything on her tax return. I insisted that she bring me the papers from the short sale. Indeed- there was the 1099-S. I did not find a 1099-C. But will do the 982 and the Schedule D. Why would I not include it! It takes a lot less time to include it in the return than to answer the IRS letter later! Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 6, 2013 Report Share Posted April 6, 2013 The 1099-S is usually included with the sale docs, not mailed later, at least in CA. I always ask for the HUD statement in a purchase, sale, or refi. Reporting is easier than dealing with a notice later. Quote Link to comment Share on other sites More sharing options...
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