Solved

Primary House Sale Reported As 1099--IRS Now Wants $533,000

Forum|Forum|4 years ago
March 8, 2022
2 replies
0 views

I filed my 2020 taxes through TurboTax / Intuit. Did the full House Sale Worksheets, etc... I just received a letter from the IRS claiming I owe them the full capital gains on the sale, plus something like $80,000 in penalties. When I download my 2020 return from the Intuit website, I see it includes the various worksheets, etc, but doesn't seem to include any breakdown of the sales (need a Schedule D?) I responded to them via their secure messaging platform and basically just attached my 2020 return as a PDF.

I'm not sure exactly what I'm supposed to do at this point. Anyone have any suggestions?

Thanks!

Best answer by JohnB5677

As a follow-up to my previous message, I want to confirm that you did live in the home for at least 2 out of the last 5 years and that it was your primary residence.

I agree that Schedule D and the 8949 should be included in the return. Please confirm that these forms are included, and the sale was recorded on these forms.

If they do not look correct please contact us. Explain that you do not want to amend your return at this time. You only want to review what you have already posted.

fanfare

Employee

@ibcoleman

To avoid tax on the full amount you must report the sale on Form 8949.

If any of the gain is eligible for exclusion, TurboTax (or you) would put that on column(g) along with other expenses of sale.

Form 8949 also requires Schedule D.

Sending another PDF copy of what you already filed won't help you.

I

ibcolemanAuthor

@fanfare wrote:
@ibcoleman
To avoid tax on the full amount you must report the sale on Form 8949.
If any of the gain is eligible for exclusion, TurboTax (or you) would put that on column(g) along with other expenses of sale.
Form 8949 also requires Schedule D.

I'm curious, if it's required to include Form 8949 as well as Schedule D, why didn't TurboTax do that?

JohnB5677Answer

As a follow-up to my previous message, I want to confirm that you did live in the home for at least 2 out of the last 5 years and that it was your primary residence.

I agree that Schedule D and the 8949 should be included in the return. Please confirm that these forms are included, and the sale was recorded on these forms.

If they do not look correct please contact us. Explain that you do not want to amend your return at this time. You only want to review what you have already posted.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

JohnB5677

You've done it exactly right. You always have the right to challenge the IRS.

If you have further communication from the IRS I suggest you contact us to be sure that the return was posted correctly, and then contact a local IRS office and make an appointment.

Visit a Taxpayer Assistance Center Local IRS Office.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"