Sold Home in 2023 - What Tax Forms Should I Expect from Banks?
I sold my home last year and I'm trying to prepare for filing my taxes. Here's my step-by-step thinking: 1. I know I need to report the sale somewhere on my tax return 2. I'm guessing the bank or title company will send me some paperwork 3. I'm not sure what forms to look for or when they typically arrive 4. I don't want to file too early and miss something important Can someone help me understand what documents I should be expecting from the banks/mortgage companies and how long I should wait for them? I'm recently retired and trying to get all my ducks in a row for this year's taxes, but I'm a bit confused about the home sale reporting process.
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Caleb Stone
Ugh, I went through this exact nightmare last year. Sold my house in January and waited FOREVER for the right forms. Turns out I needed Form 1099-S (Proceeds from Real Estate Transactions) from the settlement company, not the bank. My mortgage company sent a 1098 showing interest paid up until sale date. Had to call them twice to get it right. Still not 100% sure I did everything correctly... anyone else have this experience?
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Daniel Price
Did you receive a 1099-S for sure? Not everyone gets one. Settlement companies only issue 1099-S in certain situations - like if your profit exceeds the exclusion amount or you don't certify it's your primary residence.
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Olivia Evans
To clarify on the mortgage interest statement (Form 1098), this should be automatically issued by January 31st if you paid at least $600 in interest. It's important to note that you'll need this to deduct any mortgage interest paid prior to the sale. The settlement statement (sometimes called the HUD-1 or Closing Disclosure) from your closing is also critical for calculating your basis and gain/loss.
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Sophia Bennett
Did you live in this house as your primary residence for at least 2 of the last 5 years? Makes a HUGE difference tax-wise. š Also, was your profit less than $250k (single) or $500k (married filing jointly)? If yes to both, you might not owe any taxes at all on the sale!
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Aiden Chen
Yes. Primary residence for 12 years. Profit around $180k. Single filer. Wasn't sure what forms to expect though.
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Zoey Bianchi
Based on what you've shared, here's what you should expect: ā¢ Final mortgage statement (Form 1098) from your lender ā¢ You may or may not receive a 1099-S from the settlement company ā¢ You'll definitely need your original purchase documents ā¢ You'll need the settlement statement from your sale ā¢ Records of any capital improvements you made With 12 years as primary residence and profit under $250k, you likely qualify for the full capital gains exclusion!
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Christopher Morgan
I was in your exact situation last month and couldn't get through to the IRS to confirm what I needed. Kept getting disconnected after waiting on hold for over an hour! Finally used Claimyr (https://claimyr.com) to get through to an actual IRS agent who confirmed I didn't need to wait for a 1099-S since I qualified for the full exclusion. Saved me weeks of waiting and wondering if I could file. The agent also walked me through exactly how to report it on Schedule D and Form 8949.
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Aurora St.Pierre
I'm not sure paying for a service to reach the IRS is necessary in this case. It's like hiring someone to help you open a jar before trying it yourself! The IRS has pretty clear guidelines on their website about home sales, and tax software walks you through it step by step. That said, if you've already tried and can't get through, I can see how a service like that would save frustration.
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Grace Johnson
I appreciate you sharing this! I've been trying to get through to the IRS about a similar issue for days. Their website doesn't address my specific situation, and the hold times are ridiculous. Going to check this out.
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Jayden Reed
Have you checked if you received a Closing Disclosure from your settlement? As of January 31, 2024, most tax forms should have been issued already. If you haven't received your 1098 from the mortgage company by now, you should contact them directly. Also, did you make any significant improvements to the home during ownership that would affect your basis?
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Nora Brooks
The basis adjustment is crucial! I compared my situation to my neighbor's - we sold similar houses but my tax bill was much lower because I had documentation for a new roof ($15K), kitchen remodel ($30K), and bathroom upgrades ($12K). These all increased my basis and reduced my taxable gain. Without receipts, you can't claim these adjustments.
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Eli Wang
WARNING: Don't file without the right documents! I sold my house in 2022 and thought I had everything I needed. Filed early to get my refund and BOOM - got a scary letter from the IRS six months later saying I underreported my home sale. Had to pay $1,200 in additional taxes plus $180 in penalties. š My settlement company never sent the 1099-S and I didn't know to ask for it!
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Cassandra Moon
Same thing happened to my bro last yr. He didn't report properly and got hit w/ CP2000 notice. TBH the home sale reporting is confusing af. IRS pub 523 helped him sort it out. Sounds like OP's situation is straightforward tho - under the exclusion amt and long-term residence. Just need to report it right even if no tax due.
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Zane Hernandez
Did you pay off a mortgage when you sold? If so, did you receive a payoff statement? IRS Publication 523 covers home sales in detail. It specifies all required documentation.
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Genevieve Cavalier
One thing I learned from my home sale last year that nobody mentioned yet - keep your closing disclosure forever! I had to reference mine from my purchase 15 years ago when calculating my basis. Also, if you paid any points when you bought the home, those affect your basis too. If you made energy-efficient improvements, there might be credits to claim separate from the sale itself. The settlement statement from your sale will show if transfer taxes were paid, which may be deductible on your state return depending on where you live.
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