I sold a house in Oct 2020 in which was my primary residence and I lived in for last 4 years straight and profited less than 250k, so I thought I would be exempt from Capital Gain Taxes. However, during the closing with the attorney me and my wife signed a 1099-S Form and were given copies even though I meet the criteria to be exempt from the Capital Gains on the sale of the home. I called them last week and they stated that they are required to file the 1099-S by law and whether or not I have to pay Capital Gains isn't their business. I understand that but was that necessary and because I got a copy and they said they would upload it to the IRS I went ahead and disclosed the Income when I filed my taxes via TurboTax but was not on the hook for the Taxes.
Did I do the correct thing and does this look strange from the IRS's point of view??
Also do some Closing Attorney send it and then some don't???
