jmallard Posted March 20, 2008 Report Share Posted March 20, 2008 Hi everyone, It has been so long since I have dealt with the sale of a residence that I don't know how to report it anymore. There used to be a form for that (2119 ?). At any rate, client lived in California many years, moved to Nevada in Nov 2006 to take a new job, spouse stayed in current home in CA. Client sold house in California to his niece in July 2007, client's wife then moved to Nevada. Client sold house for $299,000 and bought a new house in Nevada for $325,000. 1. Where and/or do I report this sale of prinicpal residence ? Client had to rent an apartment from Nov 2006 to July 2007 to be able to work in Nevada. Hardly able to commute 380 miles round trip on a daily basis. He came home on week-ends and back to work in Nevada - Monday - Friday. 2. Is it possible to deduct the rent for the apartment as Temporary Living Expenses or other such statement? If so, where and how do I deduct it ? Client also gave $15,750 to his niece as "Gift Equity". It was listed in the "Special Sale Instructions" of the title company as "Seller to give Buyer a gift equity of $15,750.00. Buyer is Seller's niece". There is no mention of this in the "Seller's Closing Statement". I don't believe it is mentioned in the "Buyer's Closing Statement" either (however, I don't have that document in front of me). 3. Is this action reportable by either the Seller or Buyer ? Is it taxable to the Buyer ? I bow to my learned professionals on the forum for any help on this. Jerry Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 20, 2008 Report Share Posted March 20, 2008 Hi everyone, It has been so long since I have dealt with the sale of a residence that I don't know how to report it anymore. There used to be a form for that (2119 ?). At any rate, client lived in California many years, moved to Nevada in Nov 2006 to take a new job, spouse stayed in current home in CA. Client sold house in California to his niece in July 2007, client's wife then moved to Nevada. Client sold house for $299,000 and bought a new house in Nevada for $325,000. 1. Where and/or do I report this sale of prinicpal residence ? Client had to rent an apartment from Nov 2006 to July 2007 to be able to work in Nevada. Hardly able to commute 380 miles round trip on a daily basis. He came home on week-ends and back to work in Nevada - Monday - Friday. 2. Is it possible to deduct the rent for the apartment as Temporary Living Expenses or other such statement? If so, where and how do I deduct it ? Client also gave $15,750 to his niece as "Gift Equity". It was listed in the "Special Sale Instructions" of the title company as "Seller to give Buyer a gift equity of $15,750.00. Buyer is Seller's niece". There is no mention of this in the "Seller's Closing Statement". I don't believe it is mentioned in the "Buyer's Closing Statement" either (however, I don't have that document in front of me). 3. Is this action reportable by either the Seller or Buyer ? Is it taxable to the Buyer ? I bow to my learned professionals on the forum for any help on this. Jerry 1.- (answer to question 1) You don't report the sale of primary residence anywhere if they had a loss. 2.- Not deductible since the apartment rent is a personal expense. Husband will have moving expenses (transport expenses for himself and his belongings). 3.- Seller needs to file a gift return and taxes (most likely) will be killed by the credit. Niece's basis on the house should be reduced by gift amount and that's it. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted March 20, 2008 Report Share Posted March 20, 2008 If you have to report it because you got a 1099S; or just want to......it would be on Schedule D. There is an option on the Sched D input sheet for Sale of personal residence. Agree with Pacun on all other answers.; except that some states do have a credit for Property Taxes and/or Rent paid on the State return. You might want to check that out for the rent. Quote Link to comment Share on other sites More sharing options...
lsowers Posted March 20, 2008 Report Share Posted March 20, 2008 1 - If house was personal residence for 2 out of last 5 years, then $500,000 (if MFJ) gain exclusion under Section 121. Do not need to report unless a 1099-S was issued. If a 1099-S was issued then report, but also report 121 exclusion. 2 - In this case, since the job was to last more than a year, you cannot do temporary living expenses. 3 - If house was jointly owned, each spouse can give up to $12,000 without filing (so $24,000 is excluded) Quote Link to comment Share on other sites More sharing options...
jmallard Posted March 20, 2008 Author Report Share Posted March 20, 2008 Thanks very much for the responses. There was no 1099-S issued and I don't necessarily want to report the sale of the house, so I guess I don't have to do anything. That is nice It is so great to have this forum of helpful tax pros. Jerry Quote Link to comment Share on other sites More sharing options...
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