(1.) I sold my single family residence in 2004. I had only lived in the house for 14 months, so i got hit by the state
with an approx $9,000 tax
penalty-because I had not owned the house for atleast 2 yrs. My question is, can I also itemize that $9,000 on my federal Schedule A
(2.) My 2nd question also relates to my first question above. I 'efiled' my fed tax return
, listing the $9,000 I mentioned in my prior question on Line 13 of my federal return as a capital loss
. The IRS
responded by mail, asking me to complete a Schedule D
on the $9,000. Well, I don't think i need a Schedule D-i probably need to amend my return and list the $9,000 on my Schedule A, and remove it from Line 13 of my Federal return. However, I am not really sure what to do about this, so I would like some assistance. The IRS, in their letter to me, tell me that I can fax the schedule D and any other supporting info to them, but I am not sure exactly what needs to be faxed over?? HELP???