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1099-s

Forum|Forum|3 years ago
April 9, 2023
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Hi there,

If the Title company did not send me a 1099-s form on a sale of a property, is that mean they did not send 1099-s to the IRS also? The net of sale was less than $250000 (I'm single).

Thanks

Best answer by DavidD66

If it was your primary residence and the sales price was less than $250,000, they probably didn't send one to you or to the IRS. Of course there's always a chance they did send them, and yours was lost in the mail. It won't hurt to report the sale on your tax return anyway.

P

pk12_2

Employee

@tanlongpham , that would be generally be true but please make sure that the title company indeed did not issue a 1099-S ( to you and to the IRS ).

D

DavidD66Answer

If it was your primary residence and the sales price was less than $250,000, they probably didn't send one to you or to the IRS. Of course there's always a chance they did send them, and yours was lost in the mail. It won't hurt to report the sale on your tax return anyway.

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T

tanlongphamAuthor

I reported the sale as a rental with Long hold, the tax owe jump to $80K. I don't thing that is correct. What am I missing?

D

DavidD66

If it was your primary residence and the sales price was less than $250,000, they probably didn't send one to you or to the IRS. Of course there's always a chance they did send them, and yours was lost in the mail. it won't hurt to report the sale on your tax return anyway.

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T

tanlongphamAuthor

I contacted the Title company and they emailed 1099-s. Now I need to figure out on how to claim that $250000 allowance to offset the CG tax

J

JohnW152

To enter the sale of your main home and claim the exclusion in TurboTax Online:

If you don’t see 2022 TAXES in the left pane, select the dropdown to the right of Income & Expenses on the Hi, let’s keep working on your taxes! page and then select Let’s get started, Pick up where you left off, or Review/Edit.
- Otherwise, in the left pane, select Federal, then Wages & Income (This is labelled Income & Expenses in TurboTax Self-Employed)
Scroll down and select the Show more dropdown to the right of Less Common Income
Select Start or Revisit to the right of Sale of Home (gain or loss)
On the Sale of Your Main Home page, read the information in the Click here to see if you have to report the sale link to the right of Did you sell or have your home foreclosed in 2022? This will help you determine whether or not you need to report your home's sale. If you do, select Yes
Enter all relevant information on the ensuing pages
Be sure to answer correctly on the Time You Lived In Your Home page. This and subsequent pages determine whether you qualify for the exclusion.
When you're done with inputting this part of the interview, the Exclusion of Gain screen will tell you whether your gain has been excluded

You'll need to know:

The date you sold your home, and the selling price of your home. These can be found on your closing statement
The date you bought your home and the purchase price. This, too, can be found on your closing statement
The cost of any major improvements you made, so the program can deduct them for you

@tanlongpham

A

affordable2020

Look at your closing package. The 1099S is likely to be in there with other closing documents.

KrisD15

When you sell rental property , there usually are two types of income generated.

First, Depreciation Recapture which is "Paying Back" the depreciation that you realize on the sale

Next, Capital gain if you sell for more than what you purchased the property for.

Depending on the time it was a rental, the depreciation for that time, the original basis (cost) and the adjusted basis (cost less depreciation) the sale will result in these types of incomes.

Depreciation Recapture is reported as Ordinary Income

Sale proceeds over original cost is Capital Gains.

@tanlongpham

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P

pk12_2

Employee

@tanlongpham , while agreeing with the good explanation provided by @KrisD15 , just would like clarify things a bit more on this depreciation and its effects:

(a) for a residential rental property ( no matter how acquired), you are allowed to "book" a depreciation amount based on the value of the depreciable portion of the asset over a period of 27.5 years. The value of the building and its contents each may have a different class life. The land underneath the house is not depreciable asset.

(b) Whether you recognize the allowable depreciation or not ( it generally lowers your tax on the rental income as negative amount ), the yearly and allowable depreciation accumulates --- this is called accumulated depreciation of the property.

(c) When you sell the property and come back to your books :

The gain/ Loss on the property is based on difference between Proceeds of the Sale and Adjusted Basis.

Adjusted Basis is the sum of Acquisition Price + plus Cost of Improvements over the years LESS Accumulated Depreciation. Thus Depreciation lowers your basis.

Proceeds of the Sale is Sales Price LESS Sales Expenses ( such a RealEstate Commission, Transfer Taxes , Sales Prep Expenses etc. ).

When you have a Gain, the part of the Gain that is Equal to Accumulated Depreciation is treated as Ordinary Gain -- normal tax rate ( marginal rate ). The rest of the Gain is given tax preferred treatment -- Capital Gain Tax rate --- anywhere between zero and 28%.

Does this explain your situation ?

Is there more I can do for you ?