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9 Cards in this Set
- Front
- Back
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Your basis in the Main Home transaction was $23k. You sold it for $200k. What form do you report the gain on?
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No form required. you do not have to report this income.
Because: "If you can exclude all of the gain, you do not need to report the sale on your tax return." |
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If you have a gain of greater than $250k allowed on your Main Home; what form do you report the extra gain?
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Schedule D. You might even have to report some of the gain on Form 4797 (Sales of Business Property)
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Jimmy moved into his home 23 months ago. He fixed it up and resold it himself. He made $50k of gain. This was his main home. What are the tax consequences of this transaction?
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He must report 100% of this amount as LTCG income. He doesn't qualify for the Main Home exclusion because: "To exclude gain under the rules in this publication, you generally must have owned and lived in the property as your main home for at least 2 years during the 5-year period ending on the date of sale."
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Doupy the tax-preparer says "You can exclude gain on your Main Home and your Secondary Home, up to $250k, and if you qualify for the exclusion. But you had to have lived in the home at least 2 continuous years within the previous 5 years preceeding the date of sale of the home." What is illegal with this statement?
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If you have more than one home, you can exclude gain only from the sale of your main home. You must include in income gain from the sale of any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
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You're a member of the intelligence community in 2007, and you sell your home in 2007. What is tax-sigificant about this information?
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If you are a member of the intelligence community in 2007, you may be able to exclude the gain from your Main Home, even if you didn't satisfy the lifed-in requirement (which is that you're usually required to live in the property for 2-yrs out of the 5-yrs preceding the date of sale).
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Jim just received a 1099-C, Cancellation of debt on his home which was recently foreclosed. It says he had $35,000 in income from the sale. He was disabled and was fired from his job. He had $80,000 in an investments account. What are the tax implications?
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He cannot take the main home exclusion, because this is not an allowed form of home-sale for purposes of the $250k exclusion.
He must declare the income as taxable because he is not insolvant (i.e. has assets). |
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Jim just received a 1099-C, Cancellation of debt on his home which was recently foreclosed. It says he had $35,000 in income from the sale. He was disabled and was fired from his job. He had $80,000 in an investments account. What are the tax implications?
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He cannot take the main home exclusion, because this is not an allowed form of home-sale for purposes of the $250k exclusion.
He must declare the income as taxable because he is not insolvant (i.e. has assets). |
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Jim just received a 1099-C, Cancellation of debt on his home which was recently foreclosed. It says he had $35,000 in income from the sale. He was disabled and was fired from his job. He had $80,000 in an investments account. What are the tax implications?
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He cannot take the main home exclusion, because this is not an allowed form of home-sale for purposes of the $250k exclusion.
He must declare the income as taxable because he is not insolvant (i.e. has assets). |
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Is Unemployment compensation taxable income?
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Yes. If you wish to have some money withheld from it, you fill out form W-4V. You get 1099-G at tax time, box-1 is unemployment income, and box-4 is the amount withheld.
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