Very eloquently said, that is exactly it. And ya I tried the route with having the 1099-S changed, I even expected the current closing company to give me a hard time so I called some others just before things were really finalized, and I was basically laughed at by everyone I spoke to. All of these people are machines, and evidently gift of equities don’t happen enough for anyone to actually care enough to make them do something differently. Meanwhile lenders are perfectly aware of it and will push for this direction when anyone wants to sell their house to someone below market value.
It really is the most frustrating thing, that can have you thinking that you are, in fact, a crazy person. But ya, no telling how much extra tax revenue the IRS is making because of everyone else’s closed mindedness. Sometimes I think it’s a classic case of it being the idea of the uninformed, and therefor the automatic reaction of no, you can’t do that, not how this works. I get that a lot with police for example, they don’t like it when something is my idea. So maybe try a little bit of reverse psychology haha.
but seriously, just be patient, either fill out the taxes yourself, or keep looking. If you remind me, I can dig up the response I got from the CPA who actually knew what they were doing. Might help you.
