Hopefully that preparer works for free since he shouldn’t be paid for giving that terrible advice.

When someone comes to you for advice and they don’t take it and go else where it’s kinda funny but not. I do feel bad for them. Now I get to help them correct after they’ve received letter from IRS

If a 1099 was generated they will get a notice.  If not, they might have gotten away with it.

Exactly what I told her.  I'm waiting to see the letter.

"and bought a home within the 180 day period"

I'm guessing that other preparer is pretty old. That rule changed in the mid-1990s. Primary residence doesn't qualify for exchange. Now the regulations offer the exclusion of gain on a residence.

I will have to ask!  I never thought about that.  I know for the 1031 exchange you have 180days and thought that's where she got her information.  My friend has yet to come in so I am still curious!

Update.  She can not get in touch with the old preparer and they did receive a 1099.  I've let her know I can help her straighten this out if she will just come in.  Lesson learned.

They had 180 days to buy a house and 18 days to get back to him before he disappears 😁

🤣............run forrest run!

I'm guessing that other preparer is pretty old.

In the sense the old preparer remembers the pre-1997 (edit) rules, though that had a 730-day new purchase period, I hope not that old preparers are not learning new tax laws 😨. 

adding: commenting not on the land sale, just on old preparers!

But selling land wouldn't have qualified. 

He does not get any fire ball either

Susan, excellent point. It was never 'land' to home..... even way back then 😉