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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
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?
- 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)
It is reported, just not on the main form.
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?
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.
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:
http://www.usmessageboard.com/econo...nd-ayn-rand-type-economics-9.html#post7505695
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.
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:
http://www.usmessageboard.com/econo...nd-ayn-rand-type-economics-9.html#post7505695
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.
OK, got it. Nice slam on AmazonTania if she said this. Yes, of course this is not true.
Not if you have no taxable gains. Says right here:
Sale of Residence - Real Estate Tax Tips
You have to prove that you
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?
- 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)
It is reported, just not on the main form.
QW - I showed you a link from the IRS that says you do not have to report it if you have no gains. You can't get more authoritative than that. I'm sorry that reality doesn't jive with what you think it should be. Not to mention we have someone who sold a home in this very thread who says the IRS told him personally he didn't have to report it.
When you sell your home let us know what form you report it on.
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?
Perhaps you should be giving the advice since you know better than the IRS how to do taxes. Tell PaulS which form he should have reported the sale on.
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.
There's no back taxes you fucking idiot. He owes no taxes on the sale of his home. Pay attention.
You have to prove that you
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?
- 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)
It is reported, just not on the main form.
QW - I showed you a link from the IRS that says you do not have to report it if you have no gains. You can't get more authoritative than that. I'm sorry that reality doesn't jive with what you think it should be. Not to mention we have someone who sold a home in this very thread who says the IRS told him personally he didn't have to report it.
When you sell your home let us know what form you report it on.
I have IRS links too, what's your point?
Publication 523 (2012), Selling Your Home
Form 1099-S, Proceeds From Real Estate Transactions
For some obscure reason you keep acting like no one else is involved in you selling your home. If the other party hands you a form 1099-S, and you don't report the sale because you think the exemption covers you, you will be fined even though you are right.
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.
Guess who pays the fine if the advice they gave you is bad?
Perhaps you should be giving the advice since you know better than the IRS how to do taxes. Tell PaulS which form he should have reported the sale on.
If he reports it and doesn't have to he won't have to pay a fine.
If he doesn't report it, and should have, he will be liable even if the he got the advise from the IRS.
Think about that for a bit and ask which makes more sense.
http://www.irs.gov/irm/part20/irm_20-001-001r-cont01.htmlThe IRS is required by IRC 6404(f) and Treas. Reg. 301.6404–3 to abate any portion of any penalty attributable to erroneous written advice furnished by an officer or employee of the IRS acting in their official capacity.
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.
There's no back taxes you fucking idiot. He owes no taxes on the sale of his home. Pay attention.
And I am sure the IRS will agree with him.
Eventually.
QW - I showed you a link from the IRS that says you do not have to report it if you have no gains. You can't get more authoritative than that. I'm sorry that reality doesn't jive with what you think it should be. Not to mention we have someone who sold a home in this very thread who says the IRS told him personally he didn't have to report it.
When you sell your home let us know what form you report it on.
I have IRS links too, what's your point?
Publication 523 (2012), Selling Your Home
Form 1099-S, Proceeds From Real Estate Transactions
When you find the place in your link that says the sale of a home which qualifies for capital gain exclusion must be reported as income on the 1040, show it to me.
Not according to the IRS.For some obscure reason you keep acting like no one else is involved in you selling your home. If the other party hands you a form 1099-S, and you don't report the sale because you think the exemption covers you, you will be fined even though you are right.
Sale of Residence - Real Estate Tax TipsDo 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.
Form 1099-S. If the person responsible for closing the sale (in most cases the settlement agent) must file Form 1099-S, the information reported on the form to you and the IRS must include (in box 5) the part of any real estate tax charged to the buyer. If you actually paid the taxes for the year of sale, you must subtract the amount shown in box 5 of Form 1099-S from the amount you paid. The result is the amount you can deduct as an itemized deduction.
Perhaps you should be giving the advice since you know better than the IRS how to do taxes. Tell PaulS which form he should have reported the sale on.
If he reports it and doesn't have to he won't have to pay a fine.
If he doesn't report it, and should have, he will be liable even if the he got the advise from the IRS.
Think about that for a bit and ask which makes more sense.
Yes - but WHERE would you report it? The IRS tells you NOT to report it. Should we just make up our own forms?
BTW -
Internal Revenue Manual - 20.1.1 Introduction and Penalty Relief (Cont. 1)The IRS is required by IRC 6404(f) and Treas. Reg. 301.64043 to abate any portion of any penalty attributable to erroneous written advice furnished by an officer or employee of the IRS acting in their official capacity.
There's no back taxes you fucking idiot. He owes no taxes on the sale of his home. Pay attention.
And I am sure the IRS will agree with him.
Eventually.
Well when do you expect he'll get audited?
I have IRS links too, what's your point?
Publication 523 (2012), Selling Your Home
Form 1099-S, Proceeds From Real Estate Transactions
When you find the place in your link that says the sale of a home which qualifies for capital gain exclusion must be reported as income on the 1040, show it to me.
Not according to the IRS.
Sale of Residence - Real Estate Tax Tips
Moving the goalposts on me? I never said that it is taxable income, I said it is reportable.
From my link, which you ignored.
Form 1099-S. If the person responsible for closing the sale (in most cases the settlement agent) must file Form 1099-S, the information reported on the form to you and the IRS must include (in box 5) the part of any real estate tax charged to the buyer. If you actually paid the taxes for the year of sale, you must subtract the amount shown in box 5 of Form 1099-S from the amount you paid. The result is the amount you can deduct as an itemized deduction.
Trust me, unless that person spent less than $600 during the process of selling your home, they will issue a 1099, and you will be required to report the sale of the house. That is only one of the various reasons you will be required to report it, and why the IRS will have the option of verifying the total amount, the gain, and the fact that you are exempt from reporting it for tax purposes.
No, the IRS tells you not to report in on Form 1040.
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 include a copy of the 1099-S when you file your taxes, thus you have reported the sale.
You will also be required to report it if you itemize mortgage interest rates and property taxes.
And I am sure the IRS will agree with him.
Eventually.
Well when do you expect he'll get audited?
Most people don't expect to get audited, what's your point?
When you find the place in your link that says the sale of a home which qualifies for capital gain exclusion must be reported as income on the 1040, show it to me.
Not according to the IRS.
Sale of Residence - Real Estate Tax Tips
Moving the goalposts on me? I never said that it is taxable income, I said it is reportable.
From my link, which you ignored.
Trust me, unless that person spent less than $600 during the process of selling your home, they will issue a 1099, and you will be required to report the sale of the house. That is only one of the various reasons you will be required to report it, and why the IRS will have the option of verifying the total amount, the gain, and the fact that you are exempt from reporting it for tax purposes.Form 1099-S. If the person responsible for closing the sale (in most cases the settlement agent) must file Form 1099-S, the information reported on the form to you and the IRS must include (in box 5) the part of any real estate tax charged to the buyer. If you actually paid the taxes for the year of sale, you must subtract the amount shown in box 5 of Form 1099-S from the amount you paid. The result is the amount you can deduct as an itemized deduction.
You don't have to report it on your tax return. I've provided the link that says so many times now. Do you want me to post it again?
Well when do you expect he'll get audited?
Most people don't expect to get audited, what's your point?
You said the IRS would agree with him eventually. They've accepted his return. Looks like they agree with him now.
