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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29930
Experience:  Taxes, Immigration, Labor Relations
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When selling a house to a national organization at a loss,would

Customer Question

when selling a house to a national organization at a loss,would that organization report the sale?I don't need another loss.
Submitted: 2 years ago.
Category: Tax
Expert:  Lev replied 2 years ago.
Hi and welcome to our site!Generally - the sale of real property is reported on form 1099S http://www.irs.gov/file_source/pub/irs-pdf/f1099s.pdfHowever - when that is your primary residence - in most situations - reporting is not required. According to instructions "The following is a list of transactions that are not reportable; however, you may choose to report them. -- 1.Sale or exchange of a residence (including stock in a cooperative housing corporation) for $250,000 or less if you received an acceptable written assurance (certification) from the seller that such residence is the principal residence (within the meaning of section 121) of the seller and the full amount of the gain on such sale is excludable from gross income under section 121. If the certification includes an assurance that the seller is married, the preceding sentence shall be applied by substituting “$500,000” for “$250,000.” If there are joint sellers, you must obtain a certification from each seller (whether married or not) or file Form 1099-S for any seller who does not make the certification. The certification must be signed by each seller under penalties of perjury. When reporting is required - the reporting form is usually issued by the title company.
Expert:  Lev replied 2 years ago.
Further information from instructions for the person responsible for closing the transaction -
A sample certification format can be found in Revenue Procedure 2007-12, 2007-4 I.R.B. 354, available at
www.irs.gov/irb/2007-04_IRB/ar09.html.
Rev. Proc. 2007-12 does not reflect changes made by Public Law 110-289, section 3092(a), which added section 121(b)(4 [sic (5)]). The sample certification included in Rev. Proc. 2007-12 does not include an assurance that there has been no period of nonqualified use (as that term is defined in section 121(b)(4 [sic (5)])(C)) after December 31, 2008. Also, the sample certification included in Rev. Proc. 2007-12 does not include an assurance, as required by section 6045(e)(5)(A)(iii), that the full amount of the gain from the sale is excludable under section 121.
You may get the certification any time on or before January 31 of the year after the year of sale. You may rely on the certification and not file or furnish Form 1099-S unless you know that any assurance on the certification is incorrect.
You must keep the certification for 4 years after the year of sale. You may keep the certification on paper, microfilm, microfiche, or in an electronic storage system.
You are not required to obtain the certification. However, if you do not obtain it, you must file and furnish Form 1099-S.