The profit from the sale of my house was tax-exempt. I invested some of this tax-exempt money in a pair of oil wells being drilled by an oil company. When the oil company said the wells had failed and would be closed, my expert advisor at Turbo Tax told me that I would have to pay taxes on the formerly tax-exempt money that I lost in the oil wells. As a further plot twist, now the SEC is taking the oil company to court for fraudulent securities sales related to some of the oil wells it sold. I don't believe I should have to have paid taxes on that money in the first place, but especially not if the sale was fraudulent.
