- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
I do the same as SJR (but we're in the same metropolitan area). If you look to the 1099-S instructions that may clue you in on whether or not a 1099-S was required to be filed:
https://www.irs.gov/pub/irs-pdf/i1099s.pdf
See exceptions in page 1 column 2. Note the requirement doesn't look to the GAIN, it looks to the SALES PROCEEDS. Almost everything I see is over the $250/$500K threshold so I'm confident that there's a 1099-S "out there" somewhere. The last property I sold had it buried in the ~60 pages of closing documents. Most clients think that if it doesn't come in the mail in January with "important tax document" printed on the envelope it must not exist.
If we know they're under the exclusion I do report it but I don't spend a lot of time on it and I don't bill by the form. "Here's what the county says you paid for the property, here's what you sold it for minus the selling expenses from the closing document. If you'd like to dig into your records we can include more accurate numbers for original cost basis and improvements. We'll still end up with $0 taxable gain though so we can get their quickly or thoroughly, your choice, but the end result will be the same." 🙂
Rick