When filling out 1099-S Certification Exemption Form, will question 4 always be False if the sales price is over $500,000?
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New Member

When filling out 1099-S Certification Exemption Form, will question 4 always be False if the sales price is over $500,000?

 
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Level 15

When filling out 1099-S Certification Exemption Form, will question 4 always be False if the sales price is over $500,000?

Not necessarily...basis in the home needs to be taken into consideration.
For instance you bought for $400K and sold for $600K so the profit is only $200K even though the 1099-S shows the $600K .
Read the form instructions carefully.
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New Member

When filling out 1099-S Certification Exemption Form, will question 4 always be False if the sales price is over $500,000?

Question 4 reads:

———-

The sale or exchange is of the entire residence for $250,000 or less.

OR

I am married, the sale or exchange is of the entire residence for $500,000 or less, and the gain on the sale or exchange of the entire residence is $250,000 or less.

OR

I am married, the sale or exchange is of the entire residence for $500,000 or less, and (a) I intend to file a joint return for the year of the sale or exchange, (b) my spouse also used the residence as his or her principal residence for periods aggregating 2 years of more during the 5-year period ending on the date of the sale or exchange of the residence, and © my spouse also has not sold or exchanged another principal residence during the 2-year period ending on the date of the sale or exchange of the residence.

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I don’t see how any of these statements can be True if the sales price is over $500,000.  Am I missing something?  Even if a 1099-S gets filed with the IRS, won’t I be able to show on next year’s tax forms that my gains are less than $250,000 and I don’t need to pay any taxes?

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