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varellas4
New Member

We need to add a statement of explanation behind form 8949 is there a way to do that for clarity on an approach we are taking ?

we sold our house in less than two years, but we qualify for a proportional exemption from capital gains.  Turbo tax understands that, but we were told to put a statement together behind 8949
3 Replies
ee-ea
Level 13

We need to add a statement of explanation behind form 8949 is there a way to do that for clarity on an approach we are taking ?

Write up what you want to add on a sheet of paper  and attach it to your mailed in return.

ErnieS0
Expert Alumni

We need to add a statement of explanation behind form 8949 is there a way to do that for clarity on an approach we are taking ?

I am not sure what statement you are referring to. TurboTax does not require you to file an additional statement for a home sale.

 

It will ask whether you want the sale reported on your tax return, even if not required. You should say yes. The IRS has audited taxpayers who did not included a nontaxable home sale on their tax return. In those cases, there is no tax or penalty due. However, in such cases, you would have to go back into your return, tell TurboTax to report the sale and file an amended tax return.

fanfare
Level 15

We need to add a statement of explanation behind form 8949 is there a way to do that for clarity on an approach we are taking ?

IRS says, do not attach extraneous material unless instructed to do so.

 

Generally IRS accepts your return as filed.

Unless you are audited.

At that time you would get an opportunity to present the approach you have taken.

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