How do you handle a $0.00 gain 1099-s form?

[csingh27]

I sold a home earlier this year and received a 1099-s form with a $0.00 gain. I understand that I need to state my home sale to the IRS because of the 1099-s, but I'm wondering how exactly this should be done. 

[Carl]

You don't need to report anything at all to the IRS on any form for this sale since there was zero gain. Also, the 1099-S is only sent to you. It is NOT sent to the IRS or anyone else for that matter. The 1099-S is basically "for your information" and if it shows a gain, can be useful for your tax return. But the IRS does not get a copy of the 1099-S unless YOU personally send them one.
If your state taxes your income, I do not know if you will need to report this on your state return. So if this is the case, state what state you pay state taxes in, and someone familiar with your state tax requirements can provide you necessary information for your state tax return.

[Critter · Accepted solution]

Sorry ..... but I disagree. The IRS does get a copy of the 1099-S and if you don't report the sale (even if it will be a wash) you will get a letter from the IRS because they will assume the entire sale price is a profit until you report the basis to them. 

Form 1099-S is used to report sales or exchanges of real estate. 

Although most people only get a Form 1099-S when they sell their home, you may also get the form when you sell any of the following.

·   Improved or unimproved land, including air space.

·   Inherently permanent structures, including any residential, commercial or industrial building.

·   A condominium unit and its appurtenant fixtures and common elements, including land.

·   Stock in a cooperative housing corporation.

Mobile homes that are  not  permanently fixed to a foundation are not included in the reporting requirements for Form 1099-S.

Form 1099-S and Sale of Your Main Home

In TurboTax Deluxe, Premier, or Home and Business, jump directly to the entry screen for the sale of your main home (the one you live in – not a second home):

1. Enter  home sale  in the TurboTax search box and press the   Enter   key.

2. At the   Sale of a Main Home   screen, note the information you'll need to have and click   Continue.

3. Answer the questions on the following screens.

Form 1099-S and Sale of a Second Home or Land

Your main home, or principle residence (also considered you tax home), has special treatment limiting taxes on a sale with a gain, or profit. However, second homes, vacation homes, or cabins and real estate are not included in those special tax treatments.

Vacation homes and land or real estate are considered investments. Enter the sale of land, vacation home, cabin or other second home in TurboTax by referring to   Sale of a Vacation Home or Land.

Additional Information

For more from the IRS about what you need to know tax-wise if you sell your home, watch the video below:

Related Information:

·   The Sale of Your Home

·   Sale of a Second Home or Land

[Hal_Al]

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)
 - Wages & Income
- “I’ll choose what I work on” Button
Scroll down to:
-Less Common Income
           - Sale of Home

[Carl]

IF the home was a rental at the time you sold it, meaning that it was not converted to personal use before you sold it, then the sale is reported in the rentals and royalty section. That's because prior depreciation must be recaptured, since it will be taxed. So even if you have a zero gain sale on rental property, you'll still recapture depreciation and pay taxes on it.