I have a client who sold a home last year and received a 1099-S they do not have any reportable income for 2018 because no job . Do they still file? Lived off proceeds.

[gkball]

This was a home that was deeded to her and her sister by her mother with a life estate for mother.  House was sold for $475,000 each received a 1099-S for $237,500 date of closing was 05/11/18.  The mother passed away on 01/05/2015 and the FMV we determined at that time was $370,100.  Client also purchased a new home on 06/15/2018 for $179,000 and paid cash.

[IRonMaN · Accepted solution]

I think you want to file to avoid an IRS notice especially since it looks like there is some gain to report. 

As a side note, the new home purchase doesn't play into the sale equation at all.