Is it unusual not receive a 1099 S form for the sale of your home? Is is typically sent by closing attorney? Should we request one.

[tccpg288]

It was rented out for 2 years prior to the sale, and the 2 years before that one of the partners lived in it.

[tccpg288]

It was rented out 2 years prior to the sale, and 2 years prior to that one of the owners resided there.

[Critter-3]

Then the sale MUST be reported to recapture the depreciation allowed or allowable  EVEN IF the property qualifies for an exclusion.  You must do this even if a 1099-S is not issued.  

[tccpg288]

Got it - thanks.

Why is it that 1099-S are not always issues? I feel as if it isn't issued quite often, seems a bit odd.

[prc0900]

Help - Capital Gains on Sale of 2nd home as non-resident

I am using TT Premier with filing for 2022 taxes.  I am a working resident in PA and sold 2nd home in state of South Carolina. 

As non SC resident, I sold 2nd home last year, based on advise from CPA in SC, I prepaid both Feds and SC est capital gains taxes (his estimate of income) using a 1040ES form, (I did not own home for more than 8 months in 2022 and do have to pay any capital gains.) 

Using Premier, when entering in the Investment Income  section "Stock Mutual Funds and other" ,  (I did not having a 1099B or S),  Step #1 -  I entered in date sold, a) sale price and B) cost/other basis (-) $$ (b. Original purchase price of home), as prompted by a TT advisor on phone, choosing "short term Box C as holding period term. 

Moving on to next entry, (under advise of TT adviser), I entered Federal and State Tax (SC) $$$ CG $$ that I prepaid. (though it noted being on missing 1099?)

Moving on, next page, noted "Not employee stock", It ask me for any other less common cost adjustments applying? Yes, 1st line, "Sale price did not include all fees of selling expenses" (those "cost basis" fees of buying and selling home w/ any investments of $$$ related construction upgrades to home for sell of home)  I entered these cost there. 

Onto final screen as "Here's your sales not reported on 1099B"  Problem is, I do not think this the correct way as I would think entering of all costs for costs basis should be in the initial entry as shown in Step #1??   Any advise??   Also, my state(s) PA and SC are a mess write now.  I have $14 to PA (This is ok as I should owe PA nothing for sale of home) Yet, TT has SC owing me the taxes BACK, that  I prepaid as capital gains income! ($5700)  .   I'd love to take their money back, but something tells me not good idea. : > ) 

Help appreciated.  PC

[ErnieS0]

TurboTax Premier has a category for the sale of a second home.

1. Type 1099-b in Search (magnifying glass) in the top right corner
2. Jump to 1099-b
3. On “Your investments and savings,” select +Add investments
4. Skip “Relax. We got it.”
5. On “Let’s import your tax info,” choose Enter a different way
6. On “OK, let's start with one investment type,” select Other, then Continue
7. On “Tell us more about this sale,” enter Second Home
8. On “Now, enter one sale for Second home,” chdrop-downnd home in the drop down for What type of investment did you sell?
9. Complete the rest of the entries.

Your sales price can either be the gross or net sales price (gross less expenses). If you report the gross sales price, you can deduct sales expenses on the next screen by selecting I paid sales expenses that aren’t included in the sale proceeds reported on the form.

Your cost basis is your purchase price plus the cost of any improvements.

Your gain is reported by Pennsylvania because you are a PA resident. Pennsylvania will give you a tax credit for taxes paid to South Carolina.

Without knowing any specifics, I can’t tell you whether your South Carolina refund is correct. You would file a nonresident South Carolina return.

[TaxFormsAreConfusing]

Your answer is wrong.  You failed to explain for example, a person filing as single who is eligible for the maximum of exclusion at $250,000 where the sale of the home is greater than $250,000 after figuring the selling price minus original purchase price plus any gain or loss that still results in $250,000 net proceeds.  You need that scenario and the corresponding scenario for married filing jointly of the $500,000 exclusion.

[KrisD15]

This is a very long thread and addresses second homes as well as rentals. 

Not every answer can include every possible scenario for every Taxpayer, we usually address the most recent post. 

If you have a question, you might want to post a new question in a new thread. 

The requirements for the Home Capital Gains exclusion is listed here.  

[sdolearnick]

Do these rules around 250,000/500,000 allowed gains on homes also apply at the state level?  I assume there are not different rules for the states?  My state is asking me if I sold an 'asset'... I did, but didn't have worthy 'gains' based on the above rules..  appreciate the information!

[Hal_Al]

Q. Do these rules around 250,000/500,000 allowed gains on homes also apply at the state level?  

A. Yes, most states follow the same rule. 

But you'll need to be more specific about which state. 

[sdolearnick]

Colorado. 

[Hal_Al]

Q. Do these rules around 250,000/500,000 allowed gains on homes also apply at the state (CO) level?

A. Yes.  CO starts with the Federal AGI, which excludes the home sale. Capital gains are not part of the short add back list. 

Q.   My state is asking me if I sold an 'asset'... I did, but didn't have worthy 'gains' based on the above rules?

A. There are certain capital asset sales that are not taxed in CO, that are taxed on the federal return.  CO is asking if you qualify for one of those deductions. Answer No. 

[wadestoermer]

This is unclear. Do we or do we not pay tax on the sale of our home if we did not receive a 1099? I made a profit of 6000 which paid for the work done on the house in order to sell it. 

I did not receive a 1099. I called the title agency and they said they would not be sending me a 1099. She did not say why.

Help?

[Hal_Al]

Unlike other tax documents (W-2, 1099-INT, etc), a 1099-S is not sent to you in the mail, after the end of the year. Instead, it is usually included in your closing papers,

Whether or not, you got a 1099-S, the profit made on the sale of your home is reportable, unless you qualify for the home sale exclusion. 

If you did not get a 1099-S and did not make a profit on the sale, you do not have to report the sale. A loss on the sale of personal use property (your home)is not deductible. 

@wadestoermer  said " I made a profit of 6000 which paid for the work done on the house in order to sell it"

Fix up expenses  are not deductible from your profit. "Capital improvements", however are added to your cost basis and effectively reduce your capital gain (profit).

[AmyC]

If the agent knew you were selling your main home and qualify for the exclusion without having a taxable gain, it is not required that the 1099-S be sent. However, if you plan to sell another main home within 2 years, you may want to report this sale -if the other house will have a higher gain.

Can you exclude the full amount?

• If it was your main home that you lived in 2 out of 5 years, you may not need to report the house sale at all. See Topic No. 701 Sale of Your Home.
• If you lived in the home less than two years, you may qualify for one of the exceptions. For further information and examples, see IRS Publication 523, Selling Your Home. Does Your Home Qualify for a Partial Exclusion of Gain.
• TT  - Is the money I made from a home sale taxable?

See Determine whether you need to report the gain from your home. 

@wadestoermer