Family sold their CO home, land in WY and purchased a home in OH. What form is this recorded on? And is it US or CO?

[itonewbie · Accepted solution]

Report on Sch D / Form 8949.  If WY land is a business asset, you'd report that on F.4797.

• CO Home: CO (but also OH if sold while tax resident of OH with credit for CO tax unless fully excluded under §121)
• WY Land: State of tax resident when the sale occurred

If these are installment sales, please let us know so that we can provide more info.

[KMA-Tax]

Does only the net profit get reported?

[TaxMonkey]

No

[KMA-Tax]

So the sales of the CO home and land in WY are fully taxed and the purchase of the OH home is not documented anywhere?

[IRonMaN]

The gain is fully taxed, but where are you thinking the OH purchase could possibly be documented?

[itonewbie]

@KMA Tax Are you thinking of the old §1034 that has been obsolete for ages?

[KMA-Tax]

I was not sure, hence the reason for reaching out. I have had two CPA's tell me two different things and am wanting to ensure accuracy of this return. The family took the check from the sale of the CO home, and gave it as down payment for the OH home at closing, all transactions were within the same month. I know the WY land would be taxed, however I am struggling with the CO/OH transaction.

[sjrcpa]

Read the instructions for each state's returns. Answers from 2 CPAs and starngers on the internet will not "ensure accuracy of this return." But my colleagues here are giving you the correct answers.