Christian Posted March 3, 2020 Report Share Posted March 3, 2020 A client sold her home last year. How is this reported on Schedule D or exactly how? Lawyers here rarely send clients the federal reporting form and I have not had to fill in this info in years. Quote Link to comment Share on other sites More sharing options...
grandmabee Posted March 3, 2020 Report Share Posted March 3, 2020 go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s 5 Quote Link to comment Share on other sites More sharing options...
Pacun Posted March 3, 2020 Report Share Posted March 3, 2020 I normally start with schedule D and then it is transferred to form 8949 and then to Schedule D. Open Schedule D and then click on sale of residency or something like that. Then enter the date acquired, sold, answer the question if she/he lived there and enter the cost and sale amount. It is very simple and it will take you only a few minutes if profit was not more than $250K for one tax payer or $500K for two taxpayers. Since it was not rented, I believe all profit will be tax free. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 3, 2020 Report Share Posted March 3, 2020 2 hours ago, grandmabee said: go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s Many times, they don't realize they have been given a 1099S. It is just in with the huge packet of papers they received at closing and which they never looked at except to sign where the attorney pointed. 2 Quote Link to comment Share on other sites More sharing options...
mwrightea Posted March 3, 2020 Report Share Posted March 3, 2020 I also always report. Better safe than sorry later. 4 Quote Link to comment Share on other sites More sharing options...
Christian Posted March 3, 2020 Author Report Share Posted March 3, 2020 Thanks to all. Likely I have simply lucked out as I have never been informed any of those who sold homes ever received any followup from the Service but then again I do not process many returns with home sales either. 2 Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted March 3, 2020 Report Share Posted March 3, 2020 And maybe we are just paranoid. Hard to tell anymore. 4 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted March 4, 2020 Report Share Posted March 4, 2020 When you sell a home, as we recently did, the attorney gives you a form to sign and check off whether you've lived there for 2 of the past 5 years. If so, and the sales price is not above the Sect 121 limits of $250k or $500k, no 1099S is issued. Therefore no reporting is required. Why make work for yourself? 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted March 4, 2020 Report Share Posted March 4, 2020 50 minutes ago, Sara EA said: Why make work for yourself? Because it takes a minute to fill out the reporting form, and far longer to answer the CP2000 letter a year and a half from now. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 4, 2020 Report Share Posted March 4, 2020 15 hours ago, Gail in Virginia said: And maybe we are just paranoid. Hard to tell anymore. Hard to blame us. Seminars tend to scare the crap of out us lately. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 4, 2020 Report Share Posted March 4, 2020 21 hours ago, grandmabee said: go to schedule D and their is tab for sale of residence. If no 1099-S issued and under the reporting amount you can skip it BUT I always report it to be on the safe side. Clients don't always bring in the 1099-s The sale of principal residence is on the 8949. Sch D is little more than a summary these days. 1 Quote Link to comment Share on other sites More sharing options...
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