Sold 2 properties in 2021

[AM212]

Hi

I am wondering since we sold our house & a co-op we owned in 2021, are there any special forms we would need to file. I do not believe we owe any capital gains.

[ColeenD3]

If you sold your personal home and meet the qualifications, you are not required to pay tax on the sale. If you received a Form 1099-S for the sale, you would have to report it regardless.

You won't pay taxes on the first $250,000 (also known as a gain) you make from the sale of your home. If you're Married Filing Jointly, you won't pay taxes on the first $500,000.

That income is free and clear as long as:

• You owned the home
• It was your main home for two years or more within the five years leading up to the sale
• You waited at least two years between selling your primary home and excluding your first $250,000 or $500,000 from taxes. In other words, you may buy and sell as many primary homes as you'd like, but you'll only get this tax benefit every two years.

Can you tell the circumstances of the co-op?

[AM212]

we did not receive a 1099-S form for either.

The co-op was purchased in 2009 for $145,000 & sold for $130,000. Our daughter lived in it except for 3 years when we rented it out.

thanks for your help

[HelenC12 · Accepted solution]

You don't need form 1099-S to enter the sale of your properties.

You'll need to report the co-op as sale of a second home since it was not your primary residence. You'll also have to enter the depreciation you took when it was a rental and you may be taxed on it. Depreciation Recapture is generally taxed in the year of sale.  You may have to pay 25% on your depreciation recapture. See IRS Publication 544 Chapter 3 Depreciation Recapture, page 27.

See Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes?