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

Sep 04, 2012 1 Replies

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NadCixelsyd 13 years ago

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?

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Arthur Kamlet 13 years ago

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.

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