Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Situation: Over 65, sold principal residence, married and filing jointly, and need to know whether to declare sale proceeds.

The responses I received were:

"If the net gain was over $250k,($500K if married and filing jointly) the sale must be reported. If the sale is reportable, and there is a gain, you take the exemption in Sch D, col f (description is "Sec 121 Exclusion" (enter a negative number). The exclusion is the lesser of the gain or $250k($500K if married and filing jointly)."

Yeah but... according to IRS Pub 523, unless there is a taxable gain on a sale of a principal residence the transaction should not be reported even if a 1099-S is received."

Which answer is correct?

I think they both are. If you read closely, they do not conflict, as I see it.

However, if I'm doing a return where a 1099-S WAS received, and the gain was not taxable, I would report the sale by showing the gross proceeds and a cost equal to that, for no gain.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.