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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10846
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I sold a house and now I have received a form from the

Customer Question

I sold a house and now I have received a form from the escrow company showing they reported the income (wrong amount) to the IRS. Why did this happen and how do I un-do that?
Submitted: 6 months ago.
Category: Finance
Expert:  Lane replied 6 months ago.

Hi,

...

First, just to cover the bases, the 1099-S reports GROSS sales proceeds .... you'll need to report your basis for the gain, any adjustments, such as selling costs, etc. on form 8949 and schedule D when you do your taxes.

...

But if the gross proceeds amount in box 2 is simply wrong then you'll need to get a corrected 1099-S (typically from the closing agent - attorney or title company)

...

Expert:  Lane replied 6 months ago.

IF the escrrow company provided the 1099-S you'll need to contact them.

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Please let me know if you have other questions.

...

Lane

Expert:  Lane replied 6 months ago.

P.S. - If this was oyu primary residence and there was a 1099-S, there is a $250,000 exclusion of gain ($500,000 for those filing jointly) ... but if there is a 1099-S filed then you'll still need to report.

...

You just show that the gain wasn't taxable (or if over the exclusion amount show the amount that WAS) by showing the basis the same as the sale price on the schedule D - or again show the basis that corresponds with the amount of the gain that WAS taxable, if the gain was over the exclusion amount.

...

Just wanted to cover that base.

...

But again, if the 1099-S was simply wrong, the escrow company must, by law, issue a corrected 1099-S (you'll see the "corrected" box at the top of the form checked)

Expert:  Lane replied 6 months ago.

Please let me know if you have any questions at all.

...

If this HAS helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

Otherwise I’m working for no crediting at all here

...

Thank you!

Lane

I hold a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.