Thank you. Can you advise - what value does 1099-S show - is it a gross sold price of the rental house or something else? I am trying to understand better how I adjust my cost basis and adjust sales price for closing costs.
Also: I just learned that there will be an underpayment penalty. If you sold a house, i.e., had a big capital gain event (significant taxable income increase from the previous year), how did you manage to make prepayments to avoid tax penalties (LINE 38 in 1040)? I am a bit confused, as it seems one must make prepayments each quarter. Can one just make one lump sum prepayment before Dec 31?
See the reference here: https://www.hrblock.com/tax-center/irs/tax-responsibilities/avoiding-underpayment-tax-penalty/#:~:te...
@Mike9241
