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CGassist.168, Accountant
Category: Capital Gains and Losses
Satisfied Customers: 3572
Experience:  Tax Accountant
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In December 2014, I sold my primary home for $305,000, which

Customer Question

In December 2014, I sold my primary home for $305,000, which I lived in for just over 7 years. Minus all the fees, commissions, and paying off the existing mortage, I made exactly 33,846.29 dollars profit. I am single. I did not receive a 1099 Form. I used my HUD form to get this information. I believe I have a capital gains exception up to $250,000.
Do I owe capital gains tax? Please provide the reference(s), too.
***@******.*** Patrick Grosso
Submitted: 1 year ago.
Category: Capital Gains and Losses
Expert:  CGassist.168 replied 1 year ago.

Providing that you meet all the requirements, you will be eligible for the $250,000 exclusion, which means that there will be no capital gains tax. You do still need to report the sale of Forms 8949 and the Schedule D. For more detailed information regarding the qualifications for the exclusion, you can refer to IRS Pub 523, page 3.

Link to IRS Pub 523:

Let me know if I can be of further assistance to you regarding this matter.

Customer: replied 1 year ago.
Thank you! The sale is not listed in my 2014 Tax Forms. I received a letter from the IRS asking for if I agree or disagree with the $305,000 information. If I disagree they requested my response and documentation by February 3, 2016. I self prepared through TurboTax. If I remember correctly while I was filling-out my 2014 taxes TurboTax stated I was exempt. I suppose those sections were then omitted by the program. Is there something I can do now to resolve the matter with the IRS? Am I in some sort of trouble and facing fines?
Expert:  CGassist.168 replied 1 year ago.

You are welcome. When you filed using turbo tax, did you complete the Forms 8949 and the Schedule D? If you did not, this is likely why the IRS contacted you. What you need to do is disagree with their findings, amend your 2014 tax return to reflect the sale and the exemption.