I want to sell my home to a S-Corp that I solely own and control. It will be a sale and not an exchange for the company stock.
Since it is a sale to a related party, the gain on the house is an ordinary income.
- Can I still get the house sale exclusion (I lived in it in the past 25 years as my main residence).
- If I get a 1099-S, it is usually need to be reported on form 8949. But in my case it is an ordinary income, IRS will look for it on the 8949 but it is an ordinary income and does not belong to Schedule D. So, where do I report it and how I claim the home sale exclusion?
- In reference to the 1099-S, the house will be sold for over $250K, so, I can not be excluded from getting 1099-S.
- I read somewhere that when the company sell the house to a third party (afre buying from a related party), the cost basis is my original cost basis. Is that true?
Thanks.
