Should i fill my schedule up a little more?

Do I have to fill out Schedule D, if I got a Form 1099 S and took a loss on the sale of my house?

• Sold my house last July at a loss of what I purchased it at. I did my taxes in January of this year and then I get a form 1099s in the mail a week ago. I already search here in yahoo answers and understand the loss cannot be deducted due to the house being my personal home and not a rental. My tax guy is telling me that he needs to amend my taxes and put the loss on schedule D showing the loss. I read this on the IRS website. Do not report the 2008 sale of your main home on your tax return unless: You have a gain and you do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You have a loss and you received Form 1099-S. If you have any taxable gain on the sale of your main home that cannot be excluded, report the entire gain (line 5 of Worksheet 2) on Schedule D (Form 1040). Report it on line 1 or line 8 of Schedule D, as short-term or long-term capital gain depending on how long you owned the home. If you qualify for an exclusion (line 9 of Worksheet 2), show it on the line directly below the line on which you report the gain. Enter “Section 121 exclusion” in column (a) of that line and show the amount of the exclusion in column (f) as a loss (in parentheses). If you have a loss on the sale of your main home for which you received a Form 1099-S, you must report the loss on Schedule D even though the loss is not deductible. Report the transaction on line 1 or 8, as above. Complete columns (a) through (e). Enter -0- in column (f). If I am reading this correctly, it is stating that I have to put the loss on schedule D and put 0 in column F, even though it was a loss. Now I read in another post that I dont have to fill out schedule D. Can anyone help me with this. Do I have to amend my taxes? Please help!

• Answer:

  You got a 1099-S. The IRS is expecting you to report the sale. The IRS will use $0 as a basis and assume it's a gain if you don't. Consequently the 1040x will skip the numbered lines and have a schedule D on it that shows the sale, but $0 for the gain/loss column. From pub 523: Reporting the Sale Do not report the 2008 sale of your main home on your tax return unless:<<------ You have a gain and you do not qualify to exclude all of it, You have a gain and choose not to exclude it, or You have a loss and you received Form 1099-S.<<------------