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emc011075
emc011075, Master Tax Adviser
Category: Capital Gains and Losses
Satisfied Customers: 2750
Experience:  Master Tax Adviser and Enrolled Agent
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I purchased condo for $12,000. 17 yeaars later sold it for

Customer Question

I purchased condo for $12,000. 17 yeaars later sold it for $37,500. I haave to pay capital gains. Schedule D line 16 said to enter the amount on line 16 which is an adjusted figure but not 15% of profit. What am I doing wrong?
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  emc011075 replied 1 year ago.

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?

Customer: replied 1 year ago.
no
Customer: replied 1 year ago.
how would that matter
Expert:  emc011075 replied 1 year ago.

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?

Customer: replied 1 year ago.
Schedule D Part II item 1 d. I put sold $37,500 (purchase price) item e I put $12,000 (what I bought the unit for) the adjustments are real estate commissions, closing etc..? . then item 2 I have a gain, what do I do with this figure just put line13 form 1040?
Expert:  emc011075 replied 1 year ago.

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.

Expert:  emc011075 replied 1 year ago.

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.

Customer: replied 1 year ago.
I have form 1099-S. Form 8949 Part II I check box D. Line 0? follow lines?
Expert:  emc011075 replied 1 year ago.

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.

Customer: replied 1 year ago.
I have to do capital los carryover table lines 6 & 14, & schedule D tax worksheet in Instruction for schedule d
Expert:  emc011075 replied 1 year ago.

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).

Customer: replied 1 year ago.
Schedule D Part III item 16 is $18,000 (gain). then the bullit right below says to enter on Form 1040 line 13. The Part III does not go into the Schedule D work sheehow do i get there
Expert:  emc011075 replied 1 year ago.

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.

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