What percent of Americans buy and sell a property within a year? I bet it is pretty low.
> stocks
All the major players report this information.
> ETFs, crypto
The vast majority of people use exchanges like Coinbase and Binance. These already report.
So I'm not sure what your point really is. That there are edge cases? No shit. No one is even arguing against that. The argument for return free filing is that the vast majority of people will benefit from the system. Even if there are mistakes it is easier to look over something and correct it than do everything from scratch. The people that won't majorly benefit from this likely already have more than enough wealth to pay someone to do their taxes already and honestly I'm not concerned about them.
Don't let perfection get in the way of massive improvement.
You pay capital gains on any property sale where you earn income unless you reinvest the money in another property or use the one-time exemption. I don't know why you think the sale being within a year or not makes any difference. The major players know when you sell the stock and for how much, but they don't know the cost basis. The sale could be LIFO or FIFO and you might have transferred the stock into the brokerage without them ever knowing the purchase price. These are not edge cases.
It's straightforward to calculate real estate capital gains from reported information. Remember, real estate transactions (including sales prices) are public records.
> The Tax Reform Act of 1986 required anyone responsible for closing a real estate transaction, which may include the escrow agent, title company, or attorney, to report a real estate sale or exchange to the IRS on Form 1099-S. In addition, they were required to furnish a statement to the seller of the gross proceeds of the sale. In 1998, with the passage of the Tax Payer Relief Act of 1997, an exception to this reporting requirement was allowed.
> If the sale price of your residence is $250,000 or less ($500,000 or less for married sellers) and you have lived in the property, as your principal residence, for the last two out of the last five years, your closing agent will not be required to file Form 1099-S with the IRS. The gross proceeds of the sale need not be reported to the IRS if these conditions are met.
> Be sure that your closing agent has your written confirmation that your sale is exempt from the IRS reporting rule. Most closing agents have a form, called a “Certification for No Information Reporting on the Sale or Exchange of a Principal Residence” which you will you be asked to sign at closing. The form will ask for your seller information, social security number, address, and certification that you have met the exemption requirements.
godelski|3 years ago
What percent of Americans buy and sell a property within a year? I bet it is pretty low.
> stocks
All the major players report this information.
> ETFs, crypto
The vast majority of people use exchanges like Coinbase and Binance. These already report.
So I'm not sure what your point really is. That there are edge cases? No shit. No one is even arguing against that. The argument for return free filing is that the vast majority of people will benefit from the system. Even if there are mistakes it is easier to look over something and correct it than do everything from scratch. The people that won't majorly benefit from this likely already have more than enough wealth to pay someone to do their taxes already and honestly I'm not concerned about them.
Don't let perfection get in the way of massive improvement.
emaginniss|3 years ago
unknown|3 years ago
[deleted]
toomuchtodo|3 years ago
> The Tax Reform Act of 1986 required anyone responsible for closing a real estate transaction, which may include the escrow agent, title company, or attorney, to report a real estate sale or exchange to the IRS on Form 1099-S. In addition, they were required to furnish a statement to the seller of the gross proceeds of the sale. In 1998, with the passage of the Tax Payer Relief Act of 1997, an exception to this reporting requirement was allowed.
> If the sale price of your residence is $250,000 or less ($500,000 or less for married sellers) and you have lived in the property, as your principal residence, for the last two out of the last five years, your closing agent will not be required to file Form 1099-S with the IRS. The gross proceeds of the sale need not be reported to the IRS if these conditions are met.
> Be sure that your closing agent has your written confirmation that your sale is exempt from the IRS reporting rule. Most closing agents have a form, called a “Certification for No Information Reporting on the Sale or Exchange of a Principal Residence” which you will you be asked to sign at closing. The form will ask for your seller information, social security number, address, and certification that you have met the exemption requirements.
https://sandygadow.com/will-my-escrow-agent-have-to-report-m...