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RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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i sold my home in florida was first and last that i will ever

Customer Question

i sold my home in florida was first and last that i will ever own im 54 yrs old and disabled and divorced was divorced when i sold home my ex had nothing to do with the home had aprox 200 thousand in house sold it for 415 thousand built it in 1991 sold it sept 2008 have been been out of work since 2004 so i had my taxes done once since in 2006 when i sold a piece of property but i have not done my taxes since so what im actually asking is am i in trouble for not doing taxes on house that i sold and i was told that since i made only 215 thousand profit that i was covered by some law saying i didnt have to pay anything on first 250 thousand profit / please can you fill me in these 2 matters
Submitted: 7 years ago.
Category: Tax
Expert:  RD replied 7 years ago.
Yes, you are correct. Since the gain is under $250K, you do not have the tax to pay on the gain. However, you need to file as the IRS would not know the gain on sale until you file. They have the information on sale price(if reported on FOrm 1099S) but not on the cost price of the property.

Also, regarding the other property you sold - you need to file and report your gain or loss on such sale on your tax return.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.