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DP1
New Member

Do I need to report that I sold my house for $16,000 in 2017 but I bought it 6 years ago for $19,000?

 
4 Replies
DianeW
Expert Alumni

Do I need to report that I sold my house for $16,000 in 2017 but I bought it 6 years ago for $19,000?

No.  As long as you did not use the house for business or take any depreciation deductions on your prior tax returns, there is nothing to report if you meet the sale of homes rules.

A personal loss is never deductible.

If you made money on the sale of your house, we can help you find out if this profit is tax-free, up to $250,000 ($500,000 for married filing jointly).  In your case you would each report half of the sale, purchase price, sales and purchase expenses.

Ownership: Determine whether you meet the ownership requirement. If you owned the home for at least 24 months (2 years) during the last 5 years leading up to the date of sale (date of the closing), you meet the ownership requirement.

Residence: Determine whether you meet the residence requirement. If your home was your residence for at least 24 of the months you owned the home during the 5 years leading up to the date of sale, you meet the residence requirement. The 24 months of residence can fall anywhere within the 5-year period. It doesn't even have to be a single block of time. All you need is a total of 24 months (730 days) of residence during the 5-year period.

SweetieJean
Level 15

Do I need to report that I sold my house for $16,000 in 2017 but I bought it 6 years ago for $19,000?

If you get a 1099-S, you must report it.
Bsch4477
Level 15

Do I need to report that I sold my house for $16,000 in 2017 but I bought it 6 years ago for $19,000?

If you received a Form 1099-S, that means the IRS got a copy as well. That doesn't necessarily mean you owe tax on the sale, though. It could be a mistake, or the closing agent might not have had the proper paperwork. If you qualify for the exclusion to make all of your profit tax-free, don't report the home sale. But make sure all your paperwork is in order to show the IRS if it asks.
DianeW
Expert Alumni

Do I need to report that I sold my house for $16,000 in 2017 but I bought it 6 years ago for $19,000?

@SweetieJean & @bsch4477 Thank you for the additional information.
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