excluding capital gain on residence


K

kastnna

To exclude the CG on a Joint filing residence (up to $500K)
do I need a specific form or do I simply not count the sale
on my 1040?

Thanks
 
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P

Phil Marti

kastnna said:
To exclude the CG on a Joint filing residence (up to $500K)
do I need a specific form or do I simply not count the sale
on my 1040?
As long as the entire gain is exempt, you report nothing,
even if you get a 1099. See the 1040 instructions.
 
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M

Missy

kastnna said:
To exclude the CG on a Joint filing residence (up to $500K)
do I need a specific form or do I simply not count the sale
on my 1040?
Just don't report it. The broker should not send you a
1099S.

Missy Doyle
 
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H

Herb Smith

kastnna said:
To exclude the CG on a Joint filing residence (up to $500K)
do I need a specific form or do I simply not count the sale
on my 1040?
If the gross sale price is over $500,000 you will likely
receive a 1099S from the settlement agent and you should
report the sale on Schedule D. Add another line to claim the
exclusion. If the gain is less than the exclusion amount,
there is no requirement to report the sale anywhere.
 
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P

Paul Thomas, CPA

kastnna said:
To exclude the CG on a Joint filing residence (up to $500K)
do I need a specific form or do I simply not count the sale
on my 1040?
You don't need to include it anywhere on Schedule D if all
the gain is excluded.
 
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B

Bill

(e-mail address removed) (kastnna) posted:
To exclude the CG on a Joint filing residence
(up to $500K) do I need a specific form or do I
simply not count the sale on my 1040?
Yes.

If you sell your main residence at a price less than
$500,000 - if MFJ ($250,000 Single) - _above_ your cost
basis, then you simply do not report anything. The gain is
ignored, and no documentation is required.

However, if your total sales price could theoretically
expose you to the tax (substantially above $500K MFJ / $250K
Single), then you would be wise to preserve your cost and
other records used to calculate the gain for at least three
years.

Bill
 
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S

Shyster1040

Provided that you qualify to exclude all of the gain from
the sale, you simply do not report the sale; however, if you
have any depreciation or amortization recapture, or if you
must or choose to report some of the gain, then those
amounts must be reported on your return. For more info, see
IRS Pub. 523, available online at:
http://www.irs.gov/publications/p523
 
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J

JD

kastnna said:
To exclude the CG on a Joint filing residence (up to $500K)
do I need a specific form or do I simply not count the sale
on my 1040?
It depends...

If there is no 1099S issued then it does not need to be
reported. If a 1099S IS SENT then you need to report the
amount on Schedule D.

In general a 1099 will not be sent if the sales price is
less than $500K or $250K.
 
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Phil Marti

To exclude the CG on a Joint filing residence (up to $500K)
It depends...

If there is no 1099S issued then it does not need to be
reported. If a 1099S IS SENT then you need to report the
amount on Schedule D.3
This is contrary to IRS instructions, which say no reporting
if the entire gain is excludable, even if you get a 1099-S.
See the "what goes where" section of the 1040 instructions.

This has been in place for almost 10 years and doesn't seem
to be creating a problem during underreporter analysis.
 
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