Sorry ..... but I disagree. The IRS does get a copy of the 1099-S and if you don't report the sale (even if it will be a wash) you will get a letter from the IRS because they will assume the entire sale price is a profit until you report the basis to them.
Form
1099-S is used to report sales or exchanges of real estate.
Although
most people only get a Form 1099-S when they sell their home, you may also get
the form when you sell any of the following.
· Improved or unimproved
land, including air space.
· Inherently permanent
structures, including any residential, commercial or industrial building.
· A condominium unit and its
appurtenant fixtures and common elements, including land.
· Stock in a cooperative housing
corporation.
Mobile
homes that are
not
permanently fixed to a foundation are not
included in the reporting requirements for Form 1099-S.
Form 1099-S and Sale of Your Main
Home
In
TurboTax Deluxe, Premier, or Home and Business, jump directly to the entry
screen for the sale of your main home (the one you live in – not a second
home):
1.
Enter
home sale
in the TurboTax search box
and press the
Enter
key.
2.
At the
Sale of a Main Home
screen, note the
information you'll need to have and click
Continue.
3.
Answer the questions on the
following screens.
Form 1099-S and Sale of a Second
Home or Land
Your
main home, or principle residence (also considered you tax home), has special
treatment limiting taxes on a sale with a gain, or profit. However, second
homes, vacation homes, or cabins and real estate are not included in those
special tax treatments.
Vacation
homes and land or real estate are considered investments. Enter the sale of
land, vacation home, cabin or other second home in TurboTax by referring to
Sale of a Vacation
Home or Land.
Additional
Information
For
more from the IRS about what you need to know tax-wise if you sell your
home, watch the video below:
Related
Information:
· The Sale of Your Home
· Sale of a Second Home
or Land
