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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29954
Experience:  Taxes, Immigration, Labor Relations
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I have a Notice of Income Tax Due from the State of

Customer Question

I have a Notice of Income Tax Due from the State of California saying I owe income tax for the selling of my home in 2013. This sale was a short sell and the proceeds from the sale went to Bank of America aND US Depot of Housing and Urban Development. I only received $237.96 from Escrow Company which I did not receive the 1099 until almost a year later. I now live in Texas since 2012 and filed an amended federal tax for this amount. I didn't realize I needed to amend with California. But I in no way owe them $16,967.73. I have the information and faxed it to them on 12/2/15. I now have received another notice that is a final notice before Levy and Lien.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

The notice has a a time limit to reply.
You need to reply before the due date.

Do not ignore the notice - it might be more difficult to deal with your tax debt after the final assessment.

If looks as the taxing authorities treated the full proceeds as your gain.
You do need to file your tax return and calculate the gain as (selling price) MINUS (adjusted basis)
If you have a gain and do not qualify for exclusion - that gain would be taxable.
If that was your primary residence - you may claim an exclusion - and the best way woudl be to file the tax return with all these information.

Customer: replied 1 year ago.
I answered the first notice via fax to them - which I guess they didn't receive. My new due date is 1/7/16. The property was my primary residence. I do not believe I understand the information I need to send from the sale would it be the sale sheet that I had to sign ?
Expert:  Lev replied 1 year ago.

I would reply by fax AND mail the same information again via certified mail to retain the receipt.

Mention in the reply that you previously replied by the fax - and provide a copy of the receipt.
If that was your primary residence - you might be eligible to exclude a gain - up to $250k for a single person.

If you were issued form 1099S - you would be required to file the tax return and claim the exclusion.

If you only received form 1099A - no need to file.

If you received from 1099C - reporting cancelled debt - that is a different issue - and that amount taxable - but you might be eligible to exclude by filing form 982 with your federal tax return. If you did not do that - you would need to amend your federal tax return - and provide a copy to state taxing authorities.
As you already received a final notice - please do not delay.

Any questions?

Customer: replied 1 year ago.
I have gotten in touch with the tax board finally they just called me back and they state I have to file a tax return for that year. So, thank you for your time but I know what is required now and do not need your expertise at this time.
Thank you - you
Expert:  Lev replied 1 year ago.

I am glad to be helpful.


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