Capital Gains and Losses
Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP
Hi. My name is ***** ***** I will be happy to help you.
Was the condo your primary residence for at least 2 out of 5 years prior the sale?
If it was your primary residence you would qualify for 250K capital gain exclusion and wouldn't have to report the sale at all.
Ok. What form are you trying to fill out? I don't see anything about 15% on line 16 of Schedule D. Are you working on qualified dividends and capital gains worksheet?
Ok. I see. You will also have to file out form 8949 to report dates and adjustment codes. You basis includes your purchase price and some major improvements you made to the condo. For the adjustment code for your closing costs you put code E.
If you didn't receive 1099S you will report the transactions on line 10, if you received 1099S you will report it on line 0. From there you just follow the lines and carry the gain to the second page. You will also have to complete qualified dividend and capital gain worksheet to figure out your tax. You will not be using the standard tax table because capital gains are taxed at different rate than other income.
Ok. You check box E. The basis were not reported to IRS. You basically copy the information from 8949 to schedule D and calculate your capital gains. Your capital gains will go on lin 0H and than line 15 and 16 on the second page.
If you have a loss, than maximum you can take is $3,000, the rest will have to be carried over to the future years. In that case you will not need to use qualified dividends and capital gains worksheet (it is only for capital gains).
That's correct. The entire gain goes on line 13. You will need the worksheet to calculate tax on line 44. It because capital gains are taxed at different tax rate than ordinary income, the worksheet will help you to figure out tax separately.