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As long as the property was your mother's principal residence and the sale was less than $250,000. (if she is single) and she certified to the title company that she had no taxable gain from the sale, the sale would not have to be reported on her income tax return.
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it is not her principal residnence
but she did not profit
and did not recieve anything from the title company
Well then the sale is reportable whether or not she received a 1099-S
Was the property rented before you purchased it?
i was paying the mortgage
there are three units
only mine was rented
Well, if it wasn't her principal residence it is a reportable transaction & there should have been depreciation claimed on your unit. Did she report the rental income from you on her taxes?
we just found a 1099 with an exemption letter
when does she need to file the exemption letter?
What kind of exemption letter? If it wasn't her principal residence, the exemption letter doesn't apply.
or does she need to file the exemption letter?
Do you have any further questions?