How would I fill out this form 6252 for 2018? I was sent a letter from the IRS and I need to fill it out. I am unsure of what all these questions mean. thanks

[los2369]

I have an IRS letter saying I don't agree with these proposed taxes CP2000
I have my Closing Disclosure showing the sale of home price and profit from the sale.
I have form 6252 handy.

[Critter-3]

Ok ... so what exactly did you sell ?    Did you get a 1099-S for the sale ?   And did you fail to enter the sale on the return causing the IRS to send you a CP2000 for the missing income ? 

[los2369]

Hello,

Yes, I failed to report the sale of my home in 2018, I didn't think I had to because we were under the capital gains threshold.  Most of the funds went into the new home.   So that did cause me to get the CP2000 letter.  I did an amended return and I don't have a tax liability but the IRS still wants a 6252 filled out.  I just don't understand the questions. 

[los2369]

Hello,

Yes, I failed to report the sale of my home in 2018, I didn't think I had to because we were under the capital gains threshold.  Most of the funds went into the new home.   So that did cause me to get the CP2000 letter.  I did an amended return and I don't have a tax liability but the IRS still wants a 6252 filled out.  I just don't understand the questions. 

[DoninGA]

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@los2369 wrote:

Hello,

Yes, I failed to report the sale of my home in 2018, I didn't think I had to because we were under the capital gains threshold.  Most of the funds went into the new home.   So that did cause me to get the CP2000 letter.  I did an amended return and I don't have a tax liability but the IRS still wants a 6252 filled out.  I just don't understand the questions. 

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The Form 6252 is used for installment sales.  Was this a seller financed home that you sold under an installment sale where you receive payments from the buyer?

If you sold the home and have received the total sales price at the time of the sale, there is not a need for a Form 6252.

[los2369]

Okay, I didn't receive any installments or payments from the Buyer, they had a loan and paid in full (financed, etc).  When I called the IRS they informed me I needed this form to clear my tax liability.  Is there another form you recommend? 

[Critter-3]

If you sold your personal residence and did not hold a mortgage AND  the entire sale is excluded THEN unless you got a 1099-S from the closing company none of the sale needs to be on the return at all.  So either you or the IRS is very confused ... so I highly recommend you talk to someone and get this sorted out ... this online public forum is not the right place to get answers on this matter. 

I GOT A LETTER FROM THE IRS   

(what the letters from the IRS mean)

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

If you did NOT purchase Audit Defense:

https://support.turbotax.intuit.com/irs-notice/audit-support/

[DoninGA]

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@los2369 wrote:

Okay, I didn't receive any installments or payments from the Buyer, they had a loan and paid in full (financed, etc).  When I called the IRS they informed me I needed this form to clear my tax liability.  Is there another form you recommend? 

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Amending the tax return for 2018 to report the sale should have produced a Schedule D and a Form 8949 but if your gains were less than the exclusion amounts there is no tax liability for the sale.

Has the IRS received your 2018 amended return?  You need to contact the IRS and question their reasoning for wanting the Form 6252.

As stated in the Form 6252 instructions for the purpose of the form - https://www.irs.gov/pub/irs-pdf/f6252.pdf

Use Form 6252 to report income from an installment sale on the installment method. Generally, an installment sale is a disposition of property where at least one payment is received after the end of the tax year in which the disposition occurs.