ErnieS0
Expert Alumni

Deductions & credits

@TMOBV Yes to both your questions. Call the title company to see whether they filed a Form 1099-S with the IRS and get a copy (or at least the numbers) so the gross proceeds on the 1099-S match what is reported to the IRS.

 

TurboTax receives numerous calls from taxpayers who receive IRS notices based on 1099s that they received a copy of.

 

That brings me to your other question. If your gain is below $250,000 you do not have to report the sale of a principal residence, but doing so heads off a potential IRS notice. If you fail to report the sale and get an IRS notice, you'll have to file an amended tax return to report $0 gain. It's better to do it now to avoid any surprises later since the notice will say you owe tens of thousands of dollars (since the IRS assumes you paid nothing for your house).

 

If you choose to report the sale, tick the box that said you received a 1099-S (even if you did not). That prompts TurboTax to report the sale on your tax return.

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