Do I have to report the reason for capital gain exclusion on sale of primary residency held for < 2

Discussion in 'Tax' started by Shivani, Mar 6, 2006.

  1. Shivani

    Shivani Guest

    We moved from one state to another and sold our primary
    residency which we had held for 18 months. We moved because
    my spouse got a job in another state and my employer
    transfered me to that state too. I called IRS and explianed
    the situation to them and they told me that since we are
    moving because my spouse found a new job (unemployed to
    new), we would be exempted from paying the tax on capital
    gains. Do I have to report this while filing the taxes?
     
    Last edited by a moderator: Jan 23, 2018
    Shivani, Mar 6, 2006
    #1
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  2. Shivani

    Phil Marti Guest

    All IRS could have told you from what you told us is that it
    sounds like you qualify for the reduced exclusion explained
    in Publication 523. If it turns out that your entire gain
    is excludable, you report nothing, per the 1040
    instructions.
     
    Last edited by a moderator: Jan 23, 2018
    Phil Marti, Mar 8, 2006
    #2
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  3. Shivani

    Herb Smith Guest

    Since you are requesting a partial exclusion (i.e. up to
    $500,000 x 0.75 = $375,000) on your gain, the sale should be
    reported on your Schedule D, with an explanatory statement
    attached.

    If your gain on sale exceeds $375,000, you will owe tax on
    the amount in excess (Long Term rate, maximum of 15%).
     
    Last edited by a moderator: Jan 23, 2018
    Herb Smith, Mar 8, 2006
    #3
  4. Shivani

    Missy Guest

    The answer is that it is pro-rated. Any good tax preparer
    will be able to handle this problem.

    Missy Doyle
     
    Last edited by a moderator: Jan 23, 2018
    Missy, Mar 8, 2006
    #4
  5. Shivani

    Shivani Guest

    Now that's conflicting advise. Some people have written that
    I do not need to report anything and you say I need to
    report on Schedule D? My gain is way less than $375,000. Do
    I still need to report on Schedule D? If I am using turbo
    tax, how do I attach explanatory statement?
     
    Last edited by a moderator: Jan 23, 2018
    Shivani, Mar 19, 2006
    #5
  6. Shivani

    Shivani Guest

    Now that's conflicting advise. Some people have written that
    I do not need to report anything and you say I need to
    report on Schedule D? My gain is way less than $375,000. Do
    I still need to report on Schedule D? If I am using turbo
    tax, how do I attach explanatory statement?
     
    Last edited by a moderator: Jan 23, 2018
    Shivani, Apr 7, 2006
    #6
  7. Shivani"
    Your last question is best answered in the TurboTax user
    forum: http://forums.turbotax.com/?lid=site_header
     
    Last edited by a moderator: Jan 23, 2018
    Victor Roberts, Apr 8, 2006
    #7
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