To join in on this discussion, you must first log in.

Discussion:Sale of home twice in one year

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Advanced Tax Questions --> Sale of home twice in one year


Discussion Forum Index --> Tax Questions --> Sale of home twice in one year

Stacie (talk|edits) said:

31 March 2014
Client lives in House A for about ten years, in 2011, he bought house B and moved to the house B.

The house A was intended to sell after moved out. But before it was sold , in 2012, the house was rented out for about six months( no depreciation taken). In Sep 2012, house A was sold and was take the exclusion in 2012 tax return. And about the same time, the taxpayer relocated from the east to the west , he came to the west in Oct 2012, family came a few months later in 2013, and then the house was sold in June 2013( owned and lived in house B less than two years) The sale of second house I think can still be taken as sale of home and qualify for the exclusion due to relocation. I use Drake, but I see nowhere there is spot to check out about this kind of exception. My question is: shall I attach a statement to explain the situation? Or IRS can immediate to spot out there were two exclusions taken in 2 years in a row?

Thanks

BoulderDoug (talk|edits) said:

31 March 2014
As long as you don't get a 1099-S, you don't have to mention the transaction on the return. If there was, then yes, I would include an explanation.

Southparkcpa (talk|edits) said:

31 March 2014
The issuance of a 1099S does NOT make the reporting requirement per se. Example if you sell a rental property and do not receive a 1099S, it is still taxable. The sale of the 1st house is now a "semi taxable" event as depreciation should have been taken and then recaptured. No big deal... very minor, wouldn't sweat it.

The 2nd transaction, I dont understand. They sold house A, moved across the country and bought house B or was house B on the east coast? Please clarify.

Southparkcpa (talk|edits) said:

31 March 2014
The issuance of a 1099S does NOT make the reporting requirement per se. Example if you sell a rental property and do not receive a 1099S, it is still taxable. The sale of the 1st house is now a "semi taxable" event as depreciation should have been taken and then recaptured. No big deal... very minor, wouldn't sweat it.

The 2nd transaction, I dont understand. They sold house A, moved across the country and bought house B or was house B on the east coast? Please clarify.

Taxpro69 (talk|edits) said:

31 March 2014
Great advice on committing tax fraud. You have to report the sale because unforeseen circumstances only allows them to be eligible for a partial exclusion, if you qualify for one of the exceptions. In Drake you input the sale information on the HOME screen under the Income tab. Have to input all the relevant information and it will calculate the reduced exclusion amount and the taxable gain from sale if any.

Ckenefick (talk|edits) said:

31 March 2014
I'd like to know if there was really a gain on Home B.

Taxpro69 (talk|edits) said:

31 March 2014
I bought my current house end of 2011 and if I sold now there would be a decent gain even after sales costs. Just depends on where on the east coast the house was.

Ckenefick (talk|edits) said:

31 March 2014
And that would be nearly a 2.5-year year holding period...OP is about 8 or 9 months...anyway, just want to make sure Stacie has considered the buy and sell costs, and anything in between, that might make this a non-issue for 121 purposes.

Taxpro69 (talk|edits) said:

31 March 2014
No he bought the second house in 2011 and sold in June 2013, just didn't sell the first house until 2012. So depending on when in 2011 he bought the second house it could be anywhere from 18 months - 30 months he owned the house.

Ckenefick (talk|edits) said:

31 March 2014
Ok, then I'm with Southpark.

I read this post once and didn't respond because it was such a mess the way it was written.

How about 4 simple bullet points: Owned A, Lived in A, Owned B, Lived in B.

Anyway, if she does have two gains, then exclude them both if eligible...you have told Stacie how to do it in her software.

Now, back to that Sedation case...

Stacie (talk|edits) said:

31 March 2014
sorry, Just back.

Both A and B are in the east. They bought new home house C in the West after they move to the West

thanks all for your input.

To join in on this discussion, you must first log in.
Personal tools