Any action related to income and expenses must be reported each year to the IRS. The Internal Revenue Service of the United States has the obligation to verify that we pay our taxes in full. In the case that we do not do it we could have economic problems in the future.
For that reason, a sale as important as the one of our house can affect in a very big way our Tax Return. And not adding this sale within our IRS could mean very big problems in the not too distant future.
So don’t forget to do this kind of actions, since the IRS could impose us a fine or a penalty and the sale would end up being a real disaster. If we want to comply not only with the law but also with our attorney obligations, adding the sale of the house within our Tax Return is an absolute oblation.
Should I include the sale of my house in my IRS Tax Return?
In most cases, yes, it is necessary to include the sale of our home on our IRS Tax Return. If we do not qualify to exclude the taxable gain from this income we must add the sale of the home to the Tax Return.
Selling your home? An #IRSTaxTip shares things you may need to consider when it comes to your taxes: https://t.co/5ygASy9z4m pic.twitter.com/jYajzGJTXI
— IRSnews (@IRSnews) February 19, 2024
It is important to add the taxable gain on the Tax Return for the year in which the sale occurred. To do this, we will get the 1099-S form. And it is necessary to declare this sale even if we do not have taxable gains.
If what we want is to avoid all kinds of economic and tax problems we always have to include this type of sales. Not doing so could mean a very big problem. Even so, if we have doubts about it, the best thing to do is to go directly to the IRS or to an authorized agent to check if we are doing things right.
Remember that in this year 2024 you must include the sale of your house if it took place in 2023. If the sale took place after January of this year, you will have to wait until 2024 to add the sale of your home to the IRS Tax Return.
The 2024 Tax Season will end on April 15th for most Americans. However, some states will be able to send the Tax Return until the 17th of the same month. Likewise, the IRS grants extensions of time to send the Tax Return in case we request it.