Congress now taxing the GROSS PROCEEDS of sale on your home!

[LoneLaugher]

It could actually come from cancellation of indebtedness income

Yes! That makes perfect sense.

 

[OohPooPahDoo]

Look folks, here is where AmazonTania explain that you should report the gross proceeds of the sale of your home as "other income" on the IRS tax form 1040:

http://www.usmessageboard.com/econo...d-ayn-rand-type-economics-12.html#post7508910

The IRS isn't aware of this - if you read the 1040 instructions they don't mention doing this. So probably most accountants are unaware of it, as well. If you sold your home in the last tax year you probably didn't include it - so you're on the hook for thousands and thousands of taxes you haven't paid. I'd phone a lawyer.



Thanks to AmazonTania for catching this error!

 

[Quantum Windbag]

I never once stated that the entire proceeds from a home sale were taxed.

You claimed that it counts as gross income under the law. The IRS taxes income that is income under the law. Maybe you hadn't heard of that.

I only stated that it counts as gross income in which is used to determine your income quintle.

But its only used to determine your income quintile by you. The rest of the world does not equate gross revenues with gross income.

The entire amount is gross income. You then deduct the expenses, which amounts to what you initially paid for it, and pay tax on the net. If you don't believe me, try selling your house and not being able to prove how much you paid for it and see what the IRS is going to tax you on.

Don't let reality get in your way though, it might interfere with your rant.

 

[OohPooPahDoo]

I never once stated that the entire proceeds from a home sale were taxed.

You claimed that it counts as gross income under the law. The IRS taxes income that is income under the law. Maybe you hadn't heard of that.

I only stated that it counts as gross income in which is used to determine your income quintle.

But its only used to determine your income quintile by you. The rest of the world does not equate gross revenues with gross income.

The entire amount is gross income. You then deduct the expenses, which amounts to what you initially paid for it, and pay tax on the net.

Sorry but "gross income" includes the subtraction of non income tax costs. Its different from "net income" in that it does not include the subtraction of taxes.

Gross income in United States tax law is receipts and gains from all sources less cost of goods sold.

Gross income - Wikipedia, the free encyclopedia

So if you buy a house for X and sell it for Y, your gross income is Y-X from the transaction, not Y.


I believe you are confusing gross income with gross revenue.

If you don't believe me, try selling your house and not being able to prove how much you paid for it and see what the IRS is going to tax you on.

Actually, if the house is your primary residence, you do not have a gain that is taxable (which is usually the case if the gain is less than 250k/500k), and you have not previously depreciated the property through business use - you don't even have to report the sale of your home.
http://www.irs.gov/Businesses/Small...oyed/Sale-of-Residence---Real-Estate-Tax-Tips
Don't let reality get in your way though, it might interfere with your rant.

 

[Pete7469]

ATTN: Homeowners - you may not be aware of this, but if you sell you home, even if you come in under the 250k capital gain limit and even if you haven't depreciated any of it (for instance if it was previously a rental) - you still owe taxes. This is a new revelation found in the tax code by one of the internets greatest minds. It works like this:

Say you buy your home for 500k and sell it for 750k. Your profit is 250k or less, so you owe no capital gains tax. However - you owe income tax on the 750k - because that is counted as gross income by the IRS.

This is something I wasn't aware of until I was told by AmazonTania. You can see where she explains it here:


In fact - this works with any asset! According to AmazonTania, if you buy an asset for $X, sell it at profit for $Y - you owe capital gains tax on Y-X (as we all already know) but you ALSO owe income tax on the $Y. This may sounds strange, but AmazonTania says that you are stupid if you don't realize this, so it must be true.

I'm not a tax expert but...this sound very wrong and well worth checking with a reliable source.

You would think even the rich bed wetters who support the moonbat messiah would revolt over that.

 

[Quantum Windbag]

You claimed that it counts as gross income under the law. The IRS taxes income that is income under the law. Maybe you hadn't heard of that.
But its only used to determine your income quintile by you. The rest of the world does not equate gross revenues with gross income.

The entire amount is gross income. You then deduct the expenses, which amounts to what you initially paid for it, and pay tax on the net.

Sorry but "gross income" includes the subtraction of non income tax costs. Its different from "net income" in that it does not include the subtraction of taxes.

Gross income in United States tax law is receipts and gains from all sources less cost of goods sold.

Gross income - Wikipedia, the free encyclopedia

So if you buy a house for X and sell it for Y, your gross income is Y-X from the transaction, not Y.


I believe you are confusing gross income with gross revenue.

If you don't believe me, try selling your house and not being able to prove how much you paid for it and see what the IRS is going to tax you on.

Actually, if the house is your primary residence, you do not have a gain that is taxable (which is usually the case if the gain is less than 250k/500k), and you have not previously depreciated the property through business use - you don't even have to report the sale of your home.
Sale of Residence - Real Estate Tax Tips
Don't let reality get in your way though, it might interfere with your rant.

Like I said, try arguing with the IRS without any proof that you paid x for the house and see what they decide you owe. I will state categorically that they will charge you taxes on the entire amount, no matter how much you whine about it.

 

[rightwinger]

The entire amount is gross income. You then deduct the expenses, which amounts to what you initially paid for it, and pay tax on the net.

Sorry but "gross income" includes the subtraction of non income tax costs. Its different from "net income" in that it does not include the subtraction of taxes.

Gross income - Wikipedia, the free encyclopedia

So if you buy a house for X and sell it for Y, your gross income is Y-X from the transaction, not Y.


I believe you are confusing gross income with gross revenue.

If you don't believe me, try selling your house and not being able to prove how much you paid for it and see what the IRS is going to tax you on.

Actually, if the house is your primary residence, you do not have a gain that is taxable (which is usually the case if the gain is less than 250k/500k), and you have not previously depreciated the property through business use - you don't even have to report the sale of your home.
Sale of Residence - Real Estate Tax Tips
Don't let reality get in your way though, it might interfere with your rant.

Like I said, try arguing with the IRS without any proof that you paid x for the house and see what they decide you owe. I will state categorically that they will charge you taxes on the entire amount, no matter how much you whine about it.

What you paid for the house is a matter of public record

 

[Quantum Windbag]

Sorry but "gross income" includes the subtraction of non income tax costs. Its different from "net income" in that it does not include the subtraction of taxes.

Gross income - Wikipedia, the free encyclopedia

So if you buy a house for X and sell it for Y, your gross income is Y-X from the transaction, not Y.


I believe you are confusing gross income with gross revenue.


Actually, if the house is your primary residence, you do not have a gain that is taxable (which is usually the case if the gain is less than 250k/500k), and you have not previously depreciated the property through business use - you don't even have to report the sale of your home.
Sale of Residence - Real Estate Tax Tips
Don't let reality get in your way though, it might interfere with your rant.

Like I said, try arguing with the IRS without any proof that you paid x for the house and see what they decide you owe. I will state categorically that they will charge you taxes on the entire amount, no matter how much you whine about it.

What you paid for the house is a matter of public record

Unless you bring that proof to the IRS they will collect tax on the entire sale. Feel free to prove that the IRS will go out of its way to find out you owe less if you forget the numbers.

 

[rightwinger]

Like I said, try arguing with the IRS without any proof that you paid x for the house and see what they decide you owe. I will state categorically that they will charge you taxes on the entire amount, no matter how much you whine about it.

What you paid for the house is a matter of public record

Unless you bring that proof to the IRS they will collect tax on the entire sale. Feel free to prove that the IRS will go out of its way to find out you owe less if you forget the numbers.

So you are just assuming gross stupidity on the basis of the taxpayer

 

[OohPooPahDoo]

Like I said, try arguing with the IRS without any proof that you paid x for the house and see what they decide you owe. I will state categorically that they will charge you taxes on the entire amount, no matter how much you whine about it.

What you paid for the house is a matter of public record

Unless you bring that proof to the IRS they will collect tax on the entire sale. Feel free to prove that the IRS will go out of its way to find out you owe less if you forget the numbers.

If you sell the home you live in and any gains you have come in under the 250k/500k exclusion, you don't have to report the sale at all.

If you are required to report it because you have a taxable gain- you don't put the income in on line 21 as AmazonTania erroneously claims. You fill out a form 8949 and 1040-D. Only the GAIN from schedule D winds up on the 1040 form itself, on line 13. Thus the gross proceeds from the sale DO NOT wind up in the total on line 22 OR 37. You and AmazonTania are thus wrong!

 

[zeke]

No wonder you right wingers are so easily mislead. You all are stupid.

But it is funny to read how Oohpoo is making fun of the Amazon Lady. And even more funny to read you whack jobs jumping to her defense.

Trying to defend the indefensible is a problem though.

 

[editec]

This thread truly is batshit insane.

 

[Quantum Windbag]

What you paid for the house is a matter of public record

Unless you bring that proof to the IRS they will collect tax on the entire sale. Feel free to prove that the IRS will go out of its way to find out you owe less if you forget the numbers.

So you are just assuming gross stupidity on the basis of the taxpayer

No, I am pointing out that the government will go after all the money it can get, and that it is the obligation of the taxpayer to reduce his taxes.

 

[Quantum Windbag]

What you paid for the house is a matter of public record

Unless you bring that proof to the IRS they will collect tax on the entire sale. Feel free to prove that the IRS will go out of its way to find out you owe less if you forget the numbers.

If you sell the home you live in and any gains you have come in under the 250k/500k exclusion, you don't have to report the sale at all.

If you are required to report it because you have a taxable gain- you don't put the income in on line 21 as AmazonTania erroneously claims. You fill out a form 8949 and 1040-D. Only the GAIN from schedule D winds up on the 1040 form itself, on line 13. Thus the gross proceeds from the sale DO NOT wind up in the total on line 22 OR 37. You and AmazonTania are thus wrong!

Not true. You have to declare the income, and then prove that the gains come in under the exemptions.

What specific forms you fill out depends on how you file, not on your delusional belief that everyone is treated exactly the same.

 

[OohPooPahDoo]

Unless you bring that proof to the IRS they will collect tax on the entire sale. Feel free to prove that the IRS will go out of its way to find out you owe less if you forget the numbers.

If you sell the home you live in and any gains you have come in under the 250k/500k exclusion, you don't have to report the sale at all.

If you are required to report it because you have a taxable gain- you don't put the income in on line 21 as AmazonTania erroneously claims. You fill out a form 8949 and 1040-D. Only the GAIN from schedule D winds up on the 1040 form itself, on line 13. Thus the gross proceeds from the sale DO NOT wind up in the total on line 22 OR 37. You and AmazonTania are thus wrong!

Not true. You have to declare the income, and then prove that the gains come in under the exemptions.

What specific forms you fill out depends on how you file, not on your delusional belief that everyone is treated exactly the same.

Not if you have no taxable gains. Says right here:
Sale of Residence - Real Estate Tax Tips

Do not report the sale of your main home on your tax return unless:

You have a gain and do not qualify to exclude all of it,
You have a gain and choose not to exclude it, or
You have a loss and received a Form 1099-S.

 

[PaulS1950]

I just sold a home and called the IRS thinking I would have to pay the capital gains. I was told, after a short conversation, that I could do whatever I wanted with the money from the sale of the house - I didn't even need to list the income.

When in doubt give the right people a call and get the facts. what you may believe has nothing to do with what is real.

Information taken off or from the internet is not reliable - get it from the best source available - in this case that is the IRS.

 

[Quantum Windbag]

If you sell the home you live in and any gains you have come in under the 250k/500k exclusion, you don't have to report the sale at all.

If you are required to report it because you have a taxable gain- you don't put the income in on line 21 as AmazonTania erroneously claims. You fill out a form 8949 and 1040-D. Only the GAIN from schedule D winds up on the 1040 form itself, on line 13. Thus the gross proceeds from the sale DO NOT wind up in the total on line 22 OR 37. You and AmazonTania are thus wrong!

Not true. You have to declare the income, and then prove that the gains come in under the exemptions.

What specific forms you fill out depends on how you file, not on your delusional belief that everyone is treated exactly the same.

Not if you have no taxable gains. Says right here:
Sale of Residence - Real Estate Tax Tips

Do not report the sale of your main home on your tax return unless:

You have a gain and do not qualify to exclude all of it,
You have a gain and choose not to exclude it, or
You have a loss and received a Form 1099-S.

You have to prove that you

• Owned the home for at least two years (the ownership test)
• Lived in the home as your main home for at least two years (the use test)

How can you prove that if you do not report it? What is going to stop people from simply saying that they meet the requirement and not reporting the sale of anything? Do you really think the IRS doesn't check these things?


It is reported, just not on the main form.

 

[Quantum Windbag]

I just sold a home and called the IRS thinking I would have to pay the capital gains. I was told, after a short conversation, that I could do whatever I wanted with the money from the sale of the house - I didn't even need to list the income.

When in doubt give the right people a call and get the facts. what you may believe has nothing to do with what is real.

Information taken off or from the internet is not reliable - get it from the best source available - in this case that is the IRS.

Guess who pays the fine if the advice they gave you is bad?

 

[PaulS1950]

When you speak to the supervisor or one designated by them there can be no fine. If that person or designee makes a mistake then it is on them and not on the tax payer.

There is a list of the rules that they use to determine their recourse when advice is asked for and provided - you just have to make sure you get the advice from the proper authority.

 

[Quantum Windbag]

When you speak to the supervisor or one designated by them there can be no fine. If that person or designee makes a mistake then it is on them and not on the tax payer.

There is a list of the rules that they use to determine their recourse when advice is asked for and provided - you just have to make sure you get the advice from the proper authority.

I love naive idiots.

You can file for an abatement of the penalty if the IRS advice is bad, that does not mean the IRS will not fine you, or collect interest on the back taxes.