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

[OohPooPahDoo]

I said, and stand by the statement, that you have to report the entire amount from the sale to the IRS as income, and that you are then free to prove that you don't owe taxes on it.

Right, I know what you say. The only problem is the IRS disagrees with you. You can stand by it all you want, but when people want to know whether or not they need to report the sale of their home - they are going to ask the IRS or a CPA - not you. So you'll just have to be content with the fact that the entire country - including the IRS - is missing something in the tax code that only you have caught. Can you live with that burden?

 

[OnePercenter]

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?

Your financial adviser does.

Which is why you ALWAYS check (and get proof) of malpractice/liability insurance.

 

[Quantum Windbag]

I said, and stand by the statement, that you have to report the entire amount from the sale to the IRS as income, and that you are then free to prove that you don't owe taxes on it.

Right, I know what you say. The only problem is the IRS disagrees with you. You can stand by it all you want, but when people want to know whether or not they need to report the sale of their home - they are going to ask the IRS or a CPA - not you. So you'll just have to be content with the fact that the entire country - including the IRS - is missing something in the tax code that only you have caught. Can you live with that burden?

Except I proved they don't when I pointed out that if you sell your house you will get a 1099-S, and that you have to file that. At that point you moved the goal post.

 

[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?

Your financial adviser does.

Which is why you ALWAYS check (and get proof) of malpractice/liability insurance.

Why would I worry about that if I am not responsible for the bad advice?

 

[OohPooPahDoo]

I said, and stand by the statement, that you have to report the entire amount from the sale to the IRS as income, and that you are then free to prove that you don't owe taxes on it.

Right, I know what you say. The only problem is the IRS disagrees with you. You can stand by it all you want, but when people want to know whether or not they need to report the sale of their home - they are going to ask the IRS or a CPA - not you. So you'll just have to be content with the fact that the entire country - including the IRS - is missing something in the tax code that only you have caught. Can you live with that burden?

Except I proved they don't when I pointed out that if you sell your house you will get a 1099-S, and that you have to file that. At that point you moved the goal post.

The agent that sold your house files the 1099-S. You're a moron.

 

[OnePercenter]

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

Your financial adviser does.

Which is why you ALWAYS check (and get proof) of malpractice/liability insurance.

Why would I worry about that if I am not responsible for the bad advice?

One should ALWAYS consult their licensed and insured financial adviser BEFORE Selling or buying a home.

 

[Quantum Windbag]

Right, I know what you say. The only problem is the IRS disagrees with you. You can stand by it all you want, but when people want to know whether or not they need to report the sale of their home - they are going to ask the IRS or a CPA - not you. So you'll just have to be content with the fact that the entire country - including the IRS - is missing something in the tax code that only you have caught. Can you live with that burden?

Except I proved they don't when I pointed out that if you sell your house you will get a 1099-S, and that you have to file that. At that point you moved the goal post.

The agent that sold your house files the 1099-S. You're a moron.

Let me guess, you think you have a point.

1099s are filed by the person who pays another business for a product or service. They are also required to send copies of the 1099 to each business they file a 1099 for, and each business must then verify that the numbers are correct.

Strangely enough, it works the same way even if the business is real estate.

 

[g5000]

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.

It is not only wrong, it takes super retardation to be that wrong.

 

[OohPooPahDoo]

Except I proved they don't when I pointed out that if you sell your house you will get a 1099-S, and that you have to file that. At that point you moved the goal post.

The agent that sold your house files the 1099-S. You're a moron.

Let me guess, you think you have a point.

1099s are filed by the person who pays another business for a product or service. They are also required to send copies of the 1099 to each business they file a 1099 for, and each business must then verify that the numbers are correct.

Strangely enough, it works the same way even if the business is real estate.

The agent that sells your home files the 1099-S. I guess if you're an idiot and don't hire an agent and the gross is over 250k/500k, you'd have to file it yourself.