Where I do enter 1099S from for sale principal residence

[Mairof]

House sold by $1,860 000 in California. The client received a 1099S. She does not have any income. Where do I enter in Pro Series. She have to pay taxes?

Also received a California Form 593 where certified that is fully exempt the sale from withholding.

[dkh]

Complete the Home Sale Worksheet.  That will determine if the client owes.

[Just-Lisa-Now-]

Removed, I didnt read the full post...DUH!

[qbteachmt]

"that is fully exempt the sale from withholding."

Always keeping in mind that some event being exempt from Withholding doesn't mean not owing taxes... Withholding simply is prepayment against likely taxes. Until the tax returns are prepared, you don't see the full picture.

[garman22]

More details other than sale amount. 

Principal, how long owned, cost, improvements......you have not really given us anything. 

[Mairof]

She bought the house in Jul 17, 2019 for $1,232 500. She lived there and did not spend any money.  She sold the house for $1,860 000.

Thank you

[abctax55]

That's a gain of $ 627,500 (unless you forgot to tell us about any selling costs ?????).

Looks to me like there IS a tax liability.

Unless "she" is married?  

[garman22]

I agree w/ @abctax55 

Plus she bought 07/19, when did she sell? Did she meet the 2 year test? Has she sold another home? 

[sjrcpa]

If she has no income, what did she live on? Especially prior to the sale.

[abctax55]

Susan - the OP said somewhere in this thread  ".....She lived there and did not spend any money".   

I wanna know how to do that too.  Even with COVID & tax season, I still spend money.   Amazon is 'very' convenient in helping with that 😂

[Mairof]

Hi German, she is married and sold the house on Feb18, 2022

[Mairof]

Has she sold another home? no

[Mairof]

She did not pay the home mortgages and property taxes but she received 1098 form from 2021

[Mairof]

Hi German, she is married and sold the house on Feb18, 2022

[dkh]

2022 or 2021 ?    

if 2021,  complete the Home Sale Worksheet   answer questions carefully because the two year period was not met for the $500,000 exclusion to fully apply..... assuming the spouse also lived in the home since July 2019

If 2022, this would be reported on next years tax return

[Mairof]

thank you

the client would like to have an estimate of how much need to pay for sold the house 2022 

[garman22]

@Mairof Oh, this is a 22 issue?

As @abctax55 stated, you do have a gain in excess of $600k. But this does not include closing costs. Assuming they meet all qualifications, they can exclude the first $500k.

Im guessing that will leave some liability IRS and CA. Make estimated tax payments to both. I'd personally bypass that form from Ca. BUT..........ask @Just-Lisa-Now- as she is from Cali. 

[sjrcpa]

Who paid them?

[sjrcpa]

Will this be a Married Filing Joint return?

And if she doesn't have income, does the spouse?

[Just-Lisa-Now-]

Did you prepare the 2021 return? If so, open it and use SAve As and save it as WhatIf Estimate...enter the sale as if it happened in 2021 and see what kind of gain she ends up with for Fed and CA, then you'll have a good idea of how much to pay in estimated taxes.  You may have to backdate your purchase date so that the time frame for ownership is correct since youre using 2021 program instead of 2022.

Be sure to uncheck the EF boxes on that Saved As copy, or you'll see red errors in the EFCenter for a duplicate SSN.

[Mairof]

I'm sorry, she is single

[Mairof]

thank you Garman, this is why she need to know an estimate taxes (Fed & CA)

[abctax55]

Personally - I am done with this thread until/if/when the OP can provide ALL info at one time.

@Mairof  - we don't charge by the word on this forum.

@garman22  - ignoring the F 593 IF it has actually been prepared/sent to the FTB wouldn't be a good idea 😉  but I now suspect (mind reading at work here..) that the OP is attempting to help his/her client prepare the F 593 to give to the Title Company.

[Just-Lisa-Now-]

Ohhh, you think they're filling out the 593 for the title company?

I read it as it was already sold and they had the 593 that was marked as a sale that qualifies for 121 exclusion so exempt from withholding...so no withholding there.

I agree, having to try and pull bits and pieces of info about the transaction is tiresome.

[sjrcpa]

I'm done here, too.

[garman22]

Single??? How do you mess that one up?? You said married.

Im out too. 

[Mairof]

thank you very much, I really appreciate all information.