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Stephen G.
Stephen G., Sr Income Tax Expert
Category: Tax
Satisfied Customers: 7122
Experience:  Extensive Experience with Tax, Financial & Estate Issues
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hi i have a question i purchased a home from my mom with no

Customer Question

hi i have a question
i purchased a home from my mom with no real estate broker, we only used the morgage company (bank) and the title company. she did not profit from the sale of the the home. she is a teacher in maine and makes less than 50,000 a year and is divorced with no alimony. she did not receive a 1099-s form. this means she does not have to report the sale of the home correct?
Submitted: 6 years ago.
Category: Tax
Expert:  Stephen G. replied 6 years ago.

Stephen E. Grizey :

Hi & thanks for using our service. I'll do my best to give you a complete & accurate answer. Please ask me to clarify anything you don't understand.

Customer :

hello

Customer :

i am here

Stephen E. Grizey :

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.

Customer :

ok

Stephen E. Grizey :

Please remember to "Accept", it is the only way we get credit for our work. Feedback, if you have time, and bonuses, where you think they are warranted, are always most appreciated.

I'll be happy to answer any follow-up questions you may have.

Customer :

it is not her principal residnence

Customer :

but she did not profit

Customer :

and did not recieve anything from the title company

Stephen E. Grizey :

Well then the sale is reportable whether or not she received a 1099-S

Stephen E. Grizey :

Was the property rented before you purchased it?

Customer :

by me

Customer :

i was paying the mortgage

Customer :

there are three units

Customer :

only mine was rented

Stephen E. Grizey :

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?

Stephen E. Grizey :

Please remember to "Accept", it is the only way we get credit for our work. Feedback, if you have time, and bonuses, where you think they are warranted, are always most appreciated.

I'll be happy to answer any follow-up questions you may have.

Customer :

we just found a 1099 with an exemption letter

Customer :

when does she need to file the exemption letter?

Stephen E. Grizey :

What kind of exemption letter? If it wasn't her principal residence, the exemption letter doesn't apply.

Customer :

or does she need to file the exemption letter?

Stephen E. Grizey :

Do you have any further questions?

Stephen E. Grizey :

Please remember to "Accept", it is the only way we get credit for our work. Feedback, if you have time, and bonuses, where you think they are warranted, are always most appreciated.

I'll be happy to answer any follow-up questions you may have.