The concern that I have is, when I entered the $11,000 sale expense separately on "the reported sales price did not deduct all fees or selling expenses", Form 8949 did not show this amount and appeared to show a gain of $6,000 ($150,000 selling price minus $144,000 purchase cost plus improvements) and column (g) shows negative of $6,000 to offset the "appearance of gain". The TurboTax software that I have probably stored the $11,000 sale expenses some$144,000 purchase cost/improvements that totaled to $155,000, this total amount showed on column (e) with only code "L" on column (f), and column (g) showed a positive of $5,000, which probably accounted for the $11,000 on the paper form to show a net loss.
The 1099-S sub that I received only shows the gross proceed. There are no sale expenses (closing costs) or cost basis (such as the cost when we bought the home). Just curious, does "1099-S substitute" get sent to IRS, or just "1099-S"? Why do escrow company use 1099-S sub instead of regular 1099-S? Also, I have seen brokerage firm used 1099-B sub instead of regular 1099-B. Are both the same?
If I read your previous response correctly, you said your version of TurboTax showed the sales expenses plus purchase cost/improvement of $155,000 on column (e) and positive $5,000 on column (g)? My version only showed the cost basis of $144,000. My software is up to date, so I don't understand why mine is different from yours.
I am keeping the Box F since I got a 1099-S sub, not 1099-B, even I used the method that said "yes" to 1099-B in order to enter the name of the escrow company instead of having it shown as no financial institution.
