GeorgeM Posted April 3, 2010 Report Share Posted April 3, 2010 I have a client who had a short sale of personal residence, with a loss. i understand they do not have to pay taxes on the loss, bit I can't seem to visualize how to report it on the 1040. If I use Schedule D, do I just over ride the loss, or should I just let them paper file with no Schedule D and attach the 1099-C and 1099-S to show the sale. Thank you for any input. Quote Link to comment Share on other sites More sharing options...
grandmabee Posted April 3, 2010 Report Share Posted April 3, 2010 see the tab for personal residence. it will disallow the loss per sec 121 Did they receive a 1099-S ? If not per instructions you don't even report it. Quote Link to comment Share on other sites More sharing options...
LindaB Posted April 3, 2010 Report Share Posted April 3, 2010 If you have a 1099-C you have to report the sale on sch. D and also calculate the COD income, use form 982 to exclude it from income if the home is a qualifying personal residence. Quote Link to comment Share on other sites More sharing options...
jainen Posted April 3, 2010 Report Share Posted April 3, 2010 >>I can't seem to visualize how to report it on the 1040.<< Visualize the instructions to Schedule D at My link. "Report the transaction on line 1 or 8, depending on how long you owned the home. Complete columns (a) through (e). Because the loss is not deductible, enter -0- in column (f)." You get to this result in different ways, depending on your software. Some programs provide a worksheet for sale of home, others may have a code or checkbox for the transaction. Otherwise use a simple override. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.