Do I have to report a personal r/e transaction sold at a loss

I purchased a 50% interest in a condo in 2007. I sold it in 2011 at a small loss.

I just realized that I forgot to put it on my 2011 tax return. But was it required? There was no profit and it was not an investment. Should I ...

A-Do nothing. Will the IRS send me a letter at which point, I can explain why it was not reported? B-File an amended return which is a royal pain in the butt. How does one report this? Schedule D? Since the sales price was less than the basis, how do I show zero in the gain/loss column as the sales price and cost basis are different?

Reply to
NadCixelsyd
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Did you live in this condo as your main home for at least two of the five years before sale?

If yes, no need to report unless a form 1099-S was issued.

If this was never your main home, never used for your trade or business for for a rental, it seems to be personal use property.

That would be reported for 2011 on form 8949 as a box C item, long term, and you would enter the column b and column g amounts to result in zero loss. That zero loss transfers to schedule D.

And if you received a form 1099-S there is a real good chance the IRS will pick that up sooner than later. If no 1099-S was issued, you should still report it, recognizing that if you don't, it does not affect your bottom line tax amount.

Reply to
Arthur Kamlet

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