capital gains

[470pitt]

I have a client that sold a vacation home is I show it on a Sch D what letter do I put

Or do I use a 4797

[IRonMaN]

Schedule D - basis not reported to the IRS, sale not reported on 1099B

[470pitt]

THIS WAS A SECOND HOME THAT THEY DID NOT OCCUPY

[dkh]

You don't need to yell at @IRonMaN    his answer is still correct

Use the Schedule D, enter your buy and sell dates,  enter your proceeds and cost, check the boxes for Not reported to IRS and Not on 1099-B

[IRonMaN]

Vacation home that they never occupied, so was it really a rental?  And for the record, my hearing isn't as good as it used to be but I don't have to have people shout at me in order to hear.

[PATAX]

@IRonMaN Thanks Ironman

[470pitt]

I'm Sorry if anyone thought I was yelling at Ironman

[TaxGuyBill]

If it was a rental in the year of the sale it goes on 4797.

If it was personal use, it goes on 8949/Schedule D.

If it was something else, you'll need to give more details about what the property was used for.

[470pitt]

It was house that was given to them and they went there sometimes on weekends

But when I put it on the 8949 and don't check the box basis was not reported and

a 1099b was not issued it doesn't charge them tax on profit what am I doing wrong

thanks 

[IRonMaN]

If you have the correct dates and amounts loaded in the correct boxes, it should flow without any problems.

[470pitt]

I Have all the correct information of the 8949 no for basis no for 1099b and code in the box is F

but it still will not charge tax and the profit is over $54000.

[IRonMaN]

You said 8949.  It isn't entered on the 1099B worksheet?

[dkh]

Is there other income or just the sale of this property?  Have you looked at the Schedule D Tax Summary or Qualified Dividend/Capital Gains Tax Worksheet ?

[TaxGuyBill]

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@470pitt wrote:

but it still will not charge tax and the profit is over $54000.

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Is the $54,000 showing up on line 7 of Form 1040?

Are you sure there should be tax?  If the rest of their income is low, there might not be any tax if all of the gain is in the 0% long-term capital gain tax bracket.

[470pitt]

I hate to keep bothering you but on line 7 it is $46000 line 8 is -19000 line 9 44012 line 12

$30700 standard decuction line 15 is 13312 taxable income but the tax is zero

[IRonMaN]

Have you checked to see the actual tax calculations?  You might be surprised to learn how much tax you pay when your only taxable income is derived from capital gains.

[TaxGuyBill]

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@470pitt wrote:

I hate to keep bothering you but on line 7 it is $46000 line 8 is -19000 line 9 44012 line 12

$30700 standard decuction line 15 is 13312 taxable income but the tax is zero

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It sounds like the program is doing it correctly.

Are you familiar with how long-term capital gains are taxed?

https://www.irs.gov/taxtopics/tc409

[PATAX]

The Tax Book and Quickfinder are great.